Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 96

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 96
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 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. Holder would recognize capital gain or loss in an amount equal to the difference between the fair
market value of the public warrants deemed surrendered and the U.S. Holder’s tax basis in the public warrants deemed surrendered.
In this case, a U.S. Holder’s tax basis in the shares of Common Shares received would equal the sum of the U.S. Holder’s
tax basis in the public warrants exercised, and the exercise price of such public warrants. It is unclear whether a U.S. Holder’s
holding period for the shares of Common Shares would commence on the date of exercise of the public warrant or the day following the
date of exercise of the public warrant; in either case, the holding period will not include the period during which the U.S. Holder held
the public warrant.

Due to the absence of authority
on the U.S. federal income tax treatment of a cashless exercise, including when a U.S. Holder’s holding period would commence with
respect to the shares of Common Shares received, there can be no assurance as to which, if any, of the alternative tax consequences and
holding periods described above would be adopted by the IRS or a court of law. Accordingly