Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 254

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 254
---
 election if we
were to become and then cease to be a PFIC, and such election becomes available.

107

If you are a U. S. Holder that owns our ordinary shares during any taxable year for which
we are a PFIC, then unless you make one of the elections described below, a special tax regime will apply to both (a) any “excess
distribution” by us to you (generally, your ratable portion of distributions in any year which are greater than 125% of the average
annual distribution received by you in the shorter of the three preceding years or your holding period for our ordinary shares) and (b) any
gain realized on the sale or other disposition of the ordinary shares. Under this regime, any excess distribution and realized gain will
be treated as ordinary income (even if you hold the ordinary shares as capital assets) and will be subject to tax as if (a) the excess
distribution or gain had been realized ratably over your holding period, (b) the amount deemed realized in each year had been subject
to tax in each year of that holding period at the highest marginal rate for such year (other than income allocated to the current period
or any taxable period before we became a PFIC, which would be subject to tax at the U. S. Holder’s regular ordinary income rate for
the current year and would not be subject to the interest change discussed below), and (c) the interest charge generally applicable
to underpayments of tax had been imposed on the taxes deemed to have been payable in those years. The tax liability for amounts allocated
to years prior to the year of disposition or excess distribution cannot be offset by any net operating losses for such years.

If we are a PFIC for any taxable year during which a U. S. Holder
holds our ordinary shares, then in lieu of being subject to the tax and interest charge rules discussed above, a U. S. Holder may make
an election to include gain on the stock of a PFIC as ordinary income under a mark-to-market method, provided that such ordinary shares
are “regularly traded” on a “qualified exchange.” In general, our ordinary shares will be treated as “regularly
traded” for a given calendar year if more than a de minimisquantity of our ordinary shares
are traded on a qualified exchange on at least 15 days during each calendar quarter of such calendar year. Our ordinary shares are listed,
and we expect them to continue to be