Company: QSEA
Filing Date: 2025-02-03
Form Type: DRS/A
Source: 0001829126-25-000616
Chunk: 142

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-03
Form: DRS/A
Chunk 142
---
 which we operate; |

| ● | increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; |

| ● | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, and execution of our strategy; and |

| ● | other disadvantages compared to our competitors who have less debt. |

Since our Sponsor paid only approximately $0.0145 per share for the founder shares, certain of our officer, director, and director nominees could potentially make a substantial profit even if we acquire a target business that subsequently declines in value.

On November 5, 2024, our Sponsor paid $25,000 in exchange for 1,725,000 ordinary shares, or approximately $0.0145 per ordinary share. After giving effect of forfeiture of 225,000 ordinary shares assuming that the underwriter’s overallotment option is not exercised, the resulting purchase price will be approximately $0.0167 per share. Our Chief Executive Officer owns 100% of the interest of our Sponsor. As a result, the low acquisition cost of the founder shares creates an economic incentive whereby our Chief Executive Officer could potentially make a substantial profit even if we complete a business combination with a target business that subsequently declines in value and is unprofitable for public investors.

The value of the founder shares following completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the trading price of our public shares at such time is substantially less than $10.00 per public share.

Upon the consummation of this offering, assuming no exercise of the underwriters’ over-allotment option, our Sponsor and its affiliates will have invested in us an aggregate of $2,175,000, comprised of the $25,000 purchase price for the founder shares and the $2,150,000 purchase price for the private placement units. Assuming a trading price of $10.00 per public share upon consummation of our initial business combination, the founder shares (assuming no exercise of the over-allotment option) would have an aggregate implied value of $2,150,000, and the private shares (assuming no exercise of the over-allotment option) would have an aggregate implied value of $2,217,500. As a result, our Sponsor is likely to have the ability to recoup its investment in us and make a substantial profit on that investment, even if our public shares have lost significant value. Accordingly