Company: BDRX
Filing Date: 2025-05-08
Form Type: POS AM
Source: 0001214659-25-007201
Chunk: 104

Company: Biodexa Pharmaceuticals Plc
Filing Date: 2025-05-08
Form: POS AM
Chunk 104
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 exercise of a warrant and related receipt of an Ordinary Share upon exercise of
the warrant, or Warrant Share, (unless cash is received in lieu of the issuance of a fractional Warrant Share). A U.S. Holder’s
initial tax basis in the Warrant Share received on the exercise of a warrant should be equal to the sum of (a) such U.S. Holder’s
tax basis in such warrant, plus (b) the exercise price paid by such U.S. Holder on the exercise of such warrant. It is unclear whether
a U.S. Holder’s holding period for the Warrant Share received on the exercise of a warrant would commence on the date of exercise
of the warrant or the day following the date of exercise of the warrant. If we are a PFIC, a U.S. Holder’s holding period for the
Warrant Share for PFIC purposes will begin on the date on which such U.S. Holder acquired its Warrant Share.

In certain limited circumstances,
a U.S. Holder may be permitted to undertake a cashless exercise of warrants into Warrant Shares. The U.S. federal income tax treatment
of a cashless exercise of warrants into Warrant Shares is unclear, and the tax consequences of a cashless exercise could differ from the
consequences upon the exercise of a warrant described in the preceding paragraph. U.S. Holders should consult their own tax advisors regarding
the U.S. federal income tax consequences of a cashless exercise of warrants.

Disposition of Warrants.A U.S. Holder will recognize gain or loss on the sale or other taxable disposition of a warrant in an amount equal to the difference,
if any, between (a) the amount of cash plus the fair market value of any property received and (b) such U.S. Holder’s
tax basis in the warrant sold or otherwise disposed of. Subject to the PFIC rules discussed above, any such gain or loss generally will
be a capital gain or loss, which will be long-term capital gain or loss if the warrant is held for more than one year. Deductions for
capital losses are subject to complex limitations under the Code.

Expiration of Warrants Without Exercise. Upon the lapse or expiration of a warrant, a U.S. Holder will recognize a loss in an amount equal to such U.S. Holder’s
tax basis in the warrant. Any such loss generally will be a capital loss and will be long-term capital loss if the warrants are held for
more than one year. Deductions for capital losses