Company: GSRF
Filing Date: 2025-06-20
Form Type: DRS
Source: 0001213900-25-056174
Chunk: 270

Company: GSR IV Acquisition Corp.
Filing Date: 2025-06-20
Form: DRS
Chunk 270
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 accordance with specific rules, the attribution of shares owned by family members and such holder does not constructively own any other shares. The redemption of the ordinary shares will not be essentially equivalent to a dividend if such redemption results in a “meaningful reduction” of a U.S. Holder’s proportionate interest in us. Whether the redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in us will depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a small minority shareholder in a publicly held corporation who exercises no control over corporate affairs may constitute such a “meaningful reduction.” U.S. Holders should consult with their own tax advisors as to the tax consequences of an exercise of the redemption right. If none of the foregoing tests is satisfied, then the redemption may be treated as a distribution and the tax effects will be as described under “— Taxation of Distributions,” above. After the application of those rules, any remaining tax basis a U.S. Holder has in the redeemed ordinary shares will be added to the adjusted tax basis in such holder’s remaining ordinary shares. If there are no remaining ordinary shares, a U.S. Holder should consult its own tax advisors as to the allocation of any remaining basis. Conversion or Lapse of Rights Subject to the PFIC rules discussed below and except as discussed below with respect to the cashless conversion of a right, a U.S. Holder will generally not recognize gain or loss upon the conversion of a right. An ordinary share acquired pursuant to the conversion of a right for cash will generally have a tax basis equal to the U.S. Holder’s tax basis in the right, increased by the amount paid to convert the right. It is unclear whether a U.S. Holder’s holding period for the ordinary share will commence on the date of conversion of the right or the day following the date of conversion 160 Confidential Treatment Requested by GSR IV Acquisition Corp.
Pursuant to 17 C.F.R. Section 200.83 of the right; in either case, the holding period will not include the period during which the U.S. Holder held the right. If a right is allowed to lapse unconverted, a U.S. Holder will generally recognize a capital loss equal to such holder’s tax basis in the right. The tax consequences of a cashless conversion of a right are not clear under current U.S. federal income tax law. Subject to the PFIC rules discussed below