Company: GIGGU
Filing Date: 2025-11-12
Form Type: S-4
Source: 0001193125-25-277896
Chunk: 385

Company: GigCapital7 Corp.
Filing Date: 2025-11-12
Form: S-4
Chunk 385
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 “option” (which would include a Public Warrant) to acquire the stock of a PFIC as stock of the PFIC, while final Treasury Regulations issued under the PFIC rules provide that neither a QEF Election nor an MTM Election (as defined below) may be made with respect to options. Therefore, it is possible that the proposed Treasury Regulations issued under the PFIC rules, if finalized in their current form, would apply to cause gain recognition on the exchange of Public Warrants for Domesticated GigCapital7 Warrants pursuant to the Domestication. Any gain recognized by a Non-ElectingShareholder of GigCapital7 Class A Ordinary Shares or a U.S. Holder of Public Warrants as a result of the Domestication pursuant to the PFIC rules would be taxable income to such U.S. Holder and taxed under the excess distribution regime in the manner set forth above, with no corresponding receipt of cash. As noted above, if GigCapital7 is considered a PFIC, the Domestication could be a taxable event under the PFIC rules regardless of whether the Domestication qualifies as an F Reorganization, and, 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 excess distribution regime in the manner set forth above. 205

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

| e. | QEF Election and Mark-to-Market Election |

The impact of the PFIC rules on a U.S. Holder of GigCapital7 Class A Ordinary Shares will depend on whether the U.S. Holder has made a timely and effective election to treat GigCapital7 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 GigCapital7 Class A Ordinary Shares during which GigCapital7 qualified 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 GigCapital7 Class A Ordinary Shares at their then fair market value and requires the U.S. Holder to recognize gain pursuant to such pur