Company: NKLR
Filing Date: 2025-09-16
Form Type: 424B3
Source: 0001213900-25-087981
Chunk: 231

Company: Terra Innovatum Global N.V.
Filing Date: 2025-09-16
Form: 424B3
Chunk 231
---
 the total voting power or total value of the stock of PubCo immediately after the completion of the Merger will be required to recognize gain (but not loss) as a result of the Merger unless the U.S. holder enters into a “gain recognition agreement” (as defined in the Treasury Regulations) with the IRS. All U.S. holders are urged to consult their own tax advisors regarding the decision to file a gain recognition agreement and the procedures to be followed in connection with such a filing. U.S. Federal Income Tax Consequences of the Business Combination to Terra Quotaholders Excluded Terra Innovatum does not have any U.S. holders who hold less than 5% Terra Innovatum quotas by vote or value. Given that Terra Innovatum is a non -U.S. entity with no U.S. holders who hold less than 5% Terra Innovatum quotas by vote or value, and given that this discussion does not address tax considerations applicable to investors that own (directly, indirectly or by attribution) 5% or more of Terra Innovatum quotas, Terra Innovatum has excluded discussions on the “U.S. Federal Income Tax Consequences of the Business Combination to Terra Quotaholders.” Moreover, as Terra Innovatum is a non -U.S. entity Terra Innovatum and is not subject to U.S. federal income taxes, such discussions are irrelevant to Terra Innovatum. Redemption of GSR III Class A Ordinary Shares This discussion is subject to the discussion under “— Passive Foreign Investment Company Rules” below. In the event that a U.S. holder of GSR III Class A Ordinary Shares exercises such holder’s right to have such holder’s GSR III Class A Ordinary Shares redeemed pursuant to the redemption provisions described herein, the treatment of the transaction for U.S. federal income tax purposes will depend on whether the redemption qualifies as a sale of such stock pursuant to Section 302 of the Code or whether the U.S. holder will be treated as receiving a corporate distribution. Whether that redemption qualifies for sale treatment will depend largely on the total number of GSR III Class A Ordinary Shares treated as held by the U.S. holder (including any stock constructively owned by the U.S. holder as a result of, among other things, owning rights) relative to all of GSR III Class A Ordinary Shares both before and after the redemption. The redemption of stock generally will be treated as a sale of the stock (rather than as a corporate distribution) if the redemption is “substantially disproportionate” with respect to