Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 165

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 165
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 gain or loss generally will be treated as U.S. source gain or loss.

Exercise or Lapse of a Public Warrant

A U.S. Holder generally will not recognize taxable
gain or loss on the acquisition of a Common Share upon exercise of a public warrant for cash. The U.S. Holder’s tax basis in the
Common Share received upon exercise of the public warrant generally will be an amount equal to the sum of the U.S. Holder’s initial
investment in the public warrant (i.e.,its tax basis, calculated in U.S. dollars) and the exercise price. The U.S. Holder’s
holding period for a Common Share received upon exercise of the of a public warrant will begin on the day following the date of exercise
(or possibly the date of exercise) of the public warrant and will not include the period during which the U.S. Holder held the public
warrant. If a public warrant is allowed to lapse unexercised, a U.S. Holder generally will recognize a capital loss equal to such U.S.
Holder’s tax basis in the warrant (calculated in U.S. dollars). Such loss will be long-term if the warrant has been held for more
than one (1) year.

The tax consequences of a cashless exercise of
a public warrant are not clear under current tax law. A cashless exercise may not be taxable, either because the exercise is not a realization
event or because the exercise is treated as a recapitalization for U.S. federal income tax purposes. In either situation, a U.S. Holder’s
tax basis in the shares of Common Shares received generally should equal the U.S. Holder’s tax basis in the public warrants. If
the cashless exercise was not a realization event, it is unclear whether a U.S. Holder’s holding period for the Common Shares would
be treated as commencing on the date of exercise of the public warrant or the day following the date of exercise of the public warrant.
If the cashless exercise were treated as a recapitalization, the holding period of the shares of Common Shares received would include
the holding period of the public warrant.

It is also possible that a cashless exercise may
be treated in part as a taxable exchange in which gain or loss would be recognized. In such event, a U.S. Holder may be deemed to have
surrendered a number of public warrants having a value equal to the exercise price for the total number of public warrants to be exercised.
The U.S