Company: QSEA
Filing Date: 2025-03-11
Form Type: S-1/A
Source: 0001829126-25-001676
Chunk: 116

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-11
Form: S-1/A
Chunk 116
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 have a detrimental effect on us.

Since our Sponsor, officers, and directors will lose their entire investment in us if our initial business combination is not completed, a conflict of interest may arise in determining whether a particular business combination target is appropriate for our initial business combination.

On November 5, 2024, our Sponsor paid
$25,000 in exchange for 2,415,000 ordinary shares. Such founder shares include an aggregate of up to 315,000 ordinary shares that will
be subject to forfeiture to the extent that the underwriters’ over-allotment option is not exercised in full or in part. The number
of founder shares issued was determined based on the expectation that the founder shares would represent approximately 35% of the outstanding
shares after this offering (excluding the private shares). None of our Sponsor, officers, nor directors have expressed an intention to
purchase any units in this public offering. The founder shares will be worthless if we do not complete an initial business combination,
especially because, pursuant to letter agreement, the holders of the Sponsor shares and private units have or will have waived their
right to claim funds held in the trust account in connection with any redemption of shares. Holders of founder shares and private units
have agreed (A) to vote any shares owned by them in favor of any proposed initial business combination (if permitted by law or regulation)
and (B) not to redeem any founder shares in connection with a shareholder vote to approve a proposed initial business combination. In
addition, any loans from our Sponsor will not be repaid if our business combination is not consummated. In addition, we may obtain loans
from our Sponsor, affiliates of our Sponsor or an officer or director. In the scenario wherein an initial business combination is not
consummated within 15 months, our governing documents provide that all public shares will be redeemable for a pro rata portion of the
funds held in the trust account and any interest paid thereon; provided, however, that such claims shall be limited by (i) prior disbursements
to us attributable to interest accrued, and (ii) creditor claims as a result of taxable events or otherwise. Upon settlement of all creditor
claims and shareholder disbursements, the company will dissolve and, subject to Cayman Islands law, all shareholder rights will terminate.
The Sponsor has waived any right to the proceeds held in trust in such a scenario pursuant to the trust agreement. As such, the Sponsor’s
investment capital would be forfe