Company: TGE
Filing Date: 2025-03-21
Form Type: DRS/A
Source: 0001013762-25-001106
Chunk: 385

Company: Generation Essentials Group
Filing Date: 2025-03-21
Form: DRS/A
Chunk 385
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 any dividends paid with respect to TGE Class A Ordinary Shares. 248 Taxation on the Disposition of TGE Securities Subject to the PFIC rules discussed below, upon a sale or other taxable disposition of TGE Securities, a U.S. Holder will generally recognize capital gain or loss. The amount of gain or loss recognized will generally be equal to the difference between (i) the sum of the amount of cash and the fair market value of any property received in such disposition and (ii) the U.S. Holder’s adjusted tax basis in such securities. Under tax law currently in effect, long -termcapital gains recognized by non -corporateU.S. Holders are generally subject to U.S. federal income tax at a reduced rate of tax. Capital gain or loss will constitute long -termcapital gain or loss if the U.S. Holder’s holding period for the securities exceeds one year. The deductibility of capital losses is subject to various limitations. Exercise, Lapse or Redemption of an TGE Warrant Subject to the PFIC rules discussed below and except as discussed below regarding a cashless exercise, a U.S. Holder will generally not recognize gain or loss upon the exercise of an TGE Warrant. An TGE Class A Ordinary Share acquired pursuant to the exercise of an TGE Warrant for cash will generally have a tax basis equal to the U.S. Holder’s tax basis in the TGE Warrant, increased by the amount paid to exercise the TGE Warrant. It is unclear whether a U.S. Holder’s holding period for the TGE Class A Ordinary Share will commence on the date of exercise of the TGE Warrant or the day following the date of exercise of the TGE Warrant; in either case, the holding period will not include the period during which the U.S. Holder held the TGE Warrant. If an TGE Warrant is allowed to lapse unexercised, a U.S. Holder will generally recognize a capital loss equal to such holder’s tax basis in the TGE Warrant. Such loss will be long -termcapital loss if, at the time of the expiration, the holding period in the TGE Warrants is more than one year. The deductibility of capital losses is subject to limitations. Because of the absence of authority specifically addressing the treatment of a cashless exercise of warrants under current U.S. federal income tax law, the treatment of such a cashless exercise is unclear. A cashless exercise may be tax -free, either because the