Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 252

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 252
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Passive Foreign Investment Company Considerations

Based on certain estimates of our gross income and gross assets
and the nature of our business, we believe that we should not be classified as a PFIC for the taxable year ending December 31, 2024.

A non-U. S. corporation will be classified as a PFIC for federal
income tax purposes in any taxable year in which, after applying certain look-through rules, either:

  at least 75% of its gross income is “passive income”; or  

  at least 50% of the average quarterly value of its gross assets (which may be determined in part by the market value of our ordinary  
  shares, which is subject to change) is attributable to assets that produce “passive income” or are held for the production            
  of passive income.                                                                                                                    
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Passive income for this purpose generally includes dividends, interest,
royalties, rents, gains from commodities and securities transactions, the excess of gains over losses from the disposition of assets which
produce passive income, and includes amounts derived by reason of the temporary investment of funds raised in offerings of our ordinary
shares. 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. For publicly traded corporations, the PFIC asset test described above is
applied using the fair market value of the non-U. S. corporation’s assets. For purposes of a the PFIC asset test, a publicly traded
non-U. S. corporation may treat the aggregate fair market value of its assets as being equal to the sum of its Market Capitalization and
the total amount of its liabilities. We intend to take the position that the excess of our Market Capitalization plus liabilities over
the book value of all of our assets may generally be treated as attributable to non-passive assets. If we are classified as a PFIC in
any year with respect to which a U. S. Holder owns our ordinary shares, we will continue to be treated as a PFIC with respect to such U. S.
Holder in all succeeding years during which the U. S. Holder owns our ordinary shares, regardless of whether