Company: BDRX
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001214659-25-007340
Chunk: 101

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-12
Form: 424B3
Chunk 101
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 United States federal
income tax rules relating to PFICs are complex. U.S. Holders are urged to consult their tax advisors with respect to the purchase, ownership
and disposition of the Depositary Shares, the Pre-Funded Warrants, and the Series L Warrants, the availability of the mark-to-market election
and whether making the election would be advisable in their particular circumstances, and the IRS information reporting obligations with
respect to the purchase, ownership and disposition of the Depositary Shares, the Pre-Funded Warrants, and the Series L Warrants.

Taxation of the Depositary Shares

Dividends and Other Distributions on the Depositary Shares. Subject to the discussion above under the heading “-Passive Foreign Investment Company Considerations”,
generally the gross amount of distributions made by us, if any, to a U.S. Holder with respect to the Depositary Shares, before reduction
for any non-U.S. taxes withheld therefrom, will be includable in gross income as a dividend to the extent that such distribution
is paid out of our current or accumulated earnings and profits (as determined under United States federal income tax principles). To the
extent, if any, that the amount of any cash distribution exceeds our current and accumulated earnings and profits, it will be treated
first as a tax-free return of such U.S. Holder’s tax basis in its Depositary Shares, and to the extent the amount of the
distribution exceeds such U.S. Holder’s tax basis, the excess will be taxed as capital gain. We do not intend to calculate our earnings
and profits under United States federal income tax principles. Therefore, a U.S. Holder should expect that a distribution will generally
be treated as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital
gain under the rules described above. A dividend in respect of the Depositary Shares will not be eligible for the dividends-received deduction
allowed to corporations in respect of dividends received from other United States corporations. Non-corporate U.S. Holders may
qualify for the lower rates of taxation with respect to dividends on Depositary Shares applicable to long term capital gains (i.e., gains
from the sale of capital assets held for more than one year), provided that certain conditions are met, including certain holding period
requirements and the absence of certain risk reduction transactions. However, such reduced rate shall not apply if we are a PFIC for the
taxable year in which we