Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 115

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 115
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 such arrangements may give raise to an increased cost to consummate our business combination and adversely affect investors, including certain costs and terms that are unique to the business combination process and differ from those typically seen in a traditional initial public offering.

In particular, if we issue additional shares to investors in a PIPE to complete our business combination process, this PIPE financing process often involves negotiations with investors regarding the terms of PIPE financings, which can include the issuance of additional shares or securities that dilute existing shareholders. The sale of these additional shares may result in an increased number of outstanding shares and a corresponding decrease in the ownership percentage of existing shareholders, which could impact the value of their investments. The proceeds from the PIPE financing are intended to provide the liquidity necessary to complete the business combination, but this financing structure involves certain costs that would not typically be associated with a traditional offering. These costs may include, but are not limited to, fees paid to the investors, discounts on share prices, or other financial incentives provided to ensure the investors' participation in the financing.

Moreover, the agreements related to these PIPE investments are often structured with the goal of ensuring a return on investment for the PIPE investors, in exchange for providing the necessary capital to facilitate the completion of our business combination. These arrangements are designed to make certain that we have sufficient liquidity to complete the transaction, but they may also result in terms that prioritize the interests of the PIPE investors, which could be at the expense of the existing public shareholders.

We believe that such financing arrangements are a necessary aspect of the business combination process and may enable the completion of the business combination on favorable terms. However, the process may involve potential dilutive effect of the issuance of additional shares and the associated costs that are specific to this type of financing, which are not typically present in a traditional initial public offering of shares. The terms of these arrangements are intended to align the interests of the investors with the successful completion of the transaction, but they could result in outcomes that differ from those expected in a traditional public offering.

The requirement that our initial business combination occur with one or more target businesses having an aggregate fair market value equal to at least 80% of the value of the trust account at the time of the execution of a definitive agreement for our initial business combination may limit the type and number of companies that we may complete such a business combination with.

Pursuant to the Nasdaq listing rules, our
initial business combination must occur with one or more target businesses having an aggregate fair market value equal to at least 80%
of the value