Company: BDRX
Filing Date: 2025-05-12
Form Type: 424B3
Source: 0001214659-25-007341
Chunk: 97

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-12
Form: 424B3
Chunk 97
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 passive income or that are held for the production of passive income is at least
50%. For purposes of applying the tests in the preceding sentence, the foreign corporation is deemed to own its proportionate share of
the assets, and to receive directly its proportionate share of the income, of any other corporation of which the foreign corporation owns,
directly or indirectly, at least 25% by value of the stock.

Based upon estimates with
respect to its income, assets, and operations, it is expected that we will not be a PFIC for the current taxable year. However, because
the determination of PFIC status must be made on an annual basis after the end of the taxable year and will depend on the composition
of the income and assets, as well as the nature of the activities, of our activities and those of our subsidiaries from time to time,
there can be no assurance that we will not be considered a PFIC for any taxable year.

If we were to be classified
as a PFIC for any taxable year in which a U.S. holder held the Depositary Shares, various adverse United States tax consequences could
result to such U.S. holders, including taxation of gain on a sale or other disposition of the shares of the corporation, Depositary Shares
at ordinary income rates and imposition of an interest charge on gain or on distributions with respect to the shares, Depositary Shares.
Unless a U.S. holder of PFIC shares elects, in either case if eligible, to be taxed annually on a mark-to-market basis or makes a “qualified
electing fund,” or QEF, election and certain other requirements are met, gain realized on the sale or other disposition of PFIC
shares would generally not be treated as capital gain. Instead, the U.S. holder would be treated as if the U.S. holder had realized such
gain ratably over the holder’s holding period for such securities. The amounts allocated to the taxable year of sale or other disposition
and to any year before the foreign corporation became a PFIC would be taxed as ordinary income. The amount allocated to each other taxable
year would be subject to tax at the highest rate in effect for such year, together with an interest charge in respect of the tax attributable
to each such year. Similar rules apply to the extent any distribution in respect of PFIC shares exceeds 125% of the average annual distribution
on such PFIC securities received by the shareholder during the preceding three years or holding period, whichever is shorter. With