Company: CSCIF
Filing Date: 2025-04-09
Form Type: 20-F
Source: 0001641172-25-003456
Chunk: 146

Company: COSCIENS Biopharma Inc.
Filing Date: 2025-04-09
Form: 20-F
Item: Item 6
Chunk 146
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 APPLICATION OF THE TAX CONSEQUENCES DESCRIBED BELOW TO THEIR PARTICULAR
SITUATIONS AS WELL AS THE APPLICATION OF ANY STATE, LOCAL, FOREIGN OR OTHER TAX LAWS, INCLUDING GIFT AND ESTATE TAX LAWS.

For
a summary of the U. S. federal income tax consequences to U. S. Holders of the receipt and exercise (or expiration) of the new warrants
to be issued in connection with the Plan of Arrangement and the ownership and disposition of Common Shares received upon exercise of
such warrants, please refer to the section entitled “ U. S. Federal Income Tax Considerations for U. S. Holders”

Tax
Consequences if we are a Passive Foreign Investment Company (“PFIC”)

A
foreign corporation will be classified as a PFIC for any taxable year in which, after taking into account the income and assets of the
corporation and certain subsidiaries pursuant to applicable “look-through rules”, either (i) at least 75% of its gross income
is “passive income” or (ii) at least 50% of the average quarterly value of its assets is attributable to assets which produce
passive income or are held for the production of passive income. Passive income generally includes dividends, interest, rents and royalties
(other than certain rents and royalties derived in the active conduct of a trade or business), annuities and gains from assets that produce
passive income. If a non-U. S. corporation owns at least 25% by value of the stock of another corporation, the non-U. S. corporation is
treated for purposes of the PFIC tests as owning its proportionate share of the assets of the other corporation and as receiving directly
its proportionate share of the other corporation’s income.

  99  

The
Company believes it was a PFIC for the 2015 taxable year, but not for the taxable years 2016 through 2024. However, the fair market value
of the Company’s assets may be determined in large part by the market price of the Common Shares, which is likely to fluctuate,
and the composition of the Company’s income and assets will be affected by how, and how quickly, the Company spends any cash that
is raised in any financing transaction. Thus, no assurance can be provided that the Company will not be classified as a PFIC for the
2024 taxable year or any future taxable year. U. S. Holders should consult their tax advisors regarding the Company’s