Company: PAII-WT
Filing Date: 2025-05-29
Form Type: DRS
Source: 0001213900-25-049013
Chunk: 323

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-05-29
Form: DRS
Chunk 323
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 will be adjusted to reflect any such income or loss amounts, and any further gain recognized by such U.S. Holder on a sale or other taxable disposition of its Class A ordinary shares will be treated as ordinary income, and any further loss recognized on the sale or other disposition of its Class A ordinary shares will be treated as ordinary loss (but only to the extent of the net mark -to -marketgains previously included by the U.S. Holder as a result of the mark -to -marketelection, and any loss in excess of such prior inclusions generally would be treated as capital loss). Under current law, a mark -to -marketelection may not be made with respect to warrants. The mark -to -marketelection is available only for stock or share capital that is regularly traded on a national securities exchange that is registered with the Securities and Exchange Commission, including the NYSE (on which we intend to list the Class A ordinary shares), or on a foreign exchange or market that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. If made, a mark -to -marketelection would be effective for the taxable year for which the election was made and for all subsequent taxable years unless the Class A ordinary shares ceased to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consented to the revocation of the election. U.S. Holders are urged to consult their own tax advisors regarding the availability and tax consequences of a mark -to -marketelection in respect to our Class A ordinary shares under their particular circumstances. If we are a PFIC and, at any time, have a non -U.S. subsidiary that is classified as a PFIC, U.S. Holders generally would be deemed to own a portion of the shares of such lower -tierPFIC, and generally could incur liability for the deferred tax and interest charge under the excess distribution rules described above

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| Certain income tax considerations |

if we receive a distribution from, or dispose of all or part of our interest in, the lower -tierPFIC or the U.S. Holders otherwise were deemed to have disposed of an interest in the lower -tierPFIC. Upon written request by a U.S. Holder, we will endeavor to cause any lower -tierPFIC to provide such U.S. Holder the information that may be required to make or maintain a QEF election with respect to the lower -tierPFIC. There