Company: TGE
Filing Date: 2025-02-19
Form Type: DRS
Source: 0001213900-25-015012
Chunk: 193

Company: Generation Essentials Group
Filing Date: 2025-02-19
Form: DRS
Chunk 193
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. Following periods of such volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Because of the potential volatility of aWME Class A Ordinary Shares and aWME Warrants, aWME may become the target of securities litigation in the future. Securities litigation could result in substantial costs and divert management’s attention and resources from its business. There can be no assurance that we will not be a passive foreign investment company for any taxable year, which could subject U.S. Holders to significant adverse U.S. federal income tax consequences. If we are or become a PFIC within the meaning of section 1297 of the Code for any taxable year during which a U.S. Holder holds aWME Class A Ordinary Shares or aWME Warrants, certain adverse U.S. federal income tax consequences may apply to such U.S. Holder. A non -U.S. corporation will generally be a PFIC for U.S. federal income tax purposes if, in any taxable year, either (1) at least 75% of its gross income for such year is passive income (such as interest, dividends, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and net gains from the disposition of assets giving rise to passive income) or (2) at least 50% of the value of its assets (based on an average of the quarterly values of the assets) during such year is attributable to assets that produce or are held for the production of passive income. Based on the current and anticipated value of the assets and the composition of the income and assets, including goodwill and other unbooked intangibles, of aWME and its subsidiaries, aWME does not currently expect to be a PFIC for the taxable year that includes the Business Combination or foreseeable future taxable years.However, this conclusion is a factual determination that must be made annually at the close of each taxable year on the basis of the composition of the income and assets of aWME and its subsidiaries and, thus, is subject to change. Accordingly, there can be no assurance that aWME or any of its subsidiaries will not be a PFIC for any taxable year. For a more detailed discussion of the PFIC rules and the risks and adverse tax consequences of PFIC classification to U.S. Holders of aWME Class A Ordinary Shares or aWME Warrants, see “Tax Considerations — U.S. Federal Income Tax Considerations