Company: SATLW
Filing Date: 2025-02-14
Form Type: F-4
Source: 0001437749-25-004040
Chunk: 130

Company: Satellogic Inc.
Filing Date: 2025-02-14
Form: F-4
Chunk 130
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 F Reorganization, absent a QEF Election (or a QEF Election along with a purging election) or an MTM Election, a U.S. Holder would be taxed under the PFIC rules in the manner set forth above.

ALL U.S. HOLDERS ARE URGED TO CONSULT THEIR TAX ADVISORS REGARDING THE POTENTIAL EFFECTS OF THE PFIC RULES ON THE DOMESTICATION, INCLUDING THE IMPACT OF ANY PROPOSED OR FINAL TREASURY REGULATIONS.

QEF Election and Mark-to-Market Election.The impact of the PFIC rules on a U.S. Holder of ordinary shares will depend on whether the U.S.Holder has made a timely and effective election to treat Satellogic as a “qualified electing fund” under Section 1295 of the Code for the taxable year that is the first year in the U.S. Holder’s holding period of ordinary shares during which Satellogic qualifies as a PFIC (a “QEF Election”) or, if in a later taxable year, the U.S. Holder made a QEF Election along with a purging election. One type of purging election creates a deemed sale of the U.S. Holder’s ordinary shares at their then fair market value and requires the U.S. Holder to recognize gain pursuant to the purging election subject to the special PFIC tax and interest charge rules described above. As a result of any such purging election, the U.S. Holder would increase the adjusted tax basis in its ordinary shares by the amount of the gain recognized and, solely for purposes of the PFIC rules, would have a new holding period in its ordinary shares. U.S. Holders are urged to consult their tax advisors as to the application of the rules governing purging elections to their particular circumstances.

A U.S. Holder’s ability to make a timely and effective QEF Election (or a QEF Election along with a purging election) with respect to Satellogic is contingent upon, among other things, the provision by Satellogic of a “PFIC Annual Information Statement” to such U.S. Holder. If we determine that we are classified as a PFIC, we will use commercially reasonable efforts to provide U.S. Holders with tax information necessary to enable a U.S. Holder to make a QEF Election, including a PFIC Annual Information Statement. As discussed further above, a U.S. Holder is not able to make a QEF Election with respect to warrants under applicable final Treasury Regulations. An Elect