Company: BDRX
Filing Date: 2025-05-01
Form Type: DRS
Source: 0001214659-25-006756
Chunk: 133

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-01
Form: DRS
Chunk 133
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 Pre-Funded Warrants
as Depositary Shares for United States federal income tax purposes is not binding on the United States Internal Revenue Service, or IRS,
and the IRS may treat our Pre-Funded Warrants as warrants to acquire our Depositary Shares. In that case, the amount and character
of a U.S. Holder’s gain with respect to an investment in Pre-Funded Warrants could change, and a U.S. Holder may not be
entitled to timely make the “qualified electing fund” election described below with respect to Pre-Funded Warrants
to mitigate passive foreign investment company, or PFIC, consequences in the event that we are classified as a PFIC. Based on the foregoing,
the amount and character of a U.S. Holder’s gain with respect to an investment in our Pre-Funded Warrants could be materially
different than the discussion set forth below.

In addition, the market-to-market election
will likely not be available with respect to the Pre-Funded Warrants in the event that we are classified as a PFIC because the Pre-Funded Warrants
are not treated as “marketable stock” as they are not expected to be “regularly traded” (as such terms are defined
below).

Accordingly, each
U.S. Holder should consult his, her or its tax advisor regarding the risks associated with the acquisition of Pre-Funded Warrants
pursuant to this offering (including potential alternative characterizations). Except where specifically noted, the remainder of this
discussion assumes a Pre-Funded Warrant is treated as a Depositary Share for United States federal income tax purposes.

Tax Basis of each Depositary Share, Pre-Funded Warrant and Warrant

The Depositary
Shares and the Pre-Funded Warrants, respectively, will be sold together with accompanying Series L Warrants to purchase one
Depositary Share each. The initial tax basis of a beneficial owner in each Depositary Share and Pre-Funded Warrant will be equal
to the amount paid for the Depositary Share or Pre-Funded Warrant less the fair market value of their accompanying Series L
Warrants. The initial basis in the accompanying Series L Warrants will equal the initial fair market value of the Series L Warrants.

Passive Foreign Investment Company Considerations

A foreign corporation is a PFIC if either
(1) 75% or more of its gross income for the taxable year is passive income or (2) the average percentage of assets held by such corporation
during the taxable