Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 170

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 170
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The mark-to-market election is available only
for “marketable stock,” generally, stock that is regularly traded on a national securities exchange that is registered with
the SEC, including the Nasdaq (on which Common Shares are intended to be listed), or on a foreign exchange or market that the IRS determines
has rules sufficient to ensure that the market price represents a legitimate and sound fair market value. If made, a mark-to-market
election would be effective for the taxable year for which the election was made and for all subsequent taxable years unless the Common
Shares cease to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consents to the revocation of
the election. U.S. Holders are urged to consult their tax advisors regarding the availability and tax consequences of a mark-to-market
election with respect to Common Shares under their particular circumstances.

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The application of the PFIC rules to public
warrants is unclear. A proposed Treasury Regulation issued under these rules generally treats an “option” (which would
include a public warrant) to acquire the stock of a PFIC as stock of the PFIC, while a final Treasury Regulation issued under these rules provides
that the holder of an option is not entitled make the PFIC Elections. Another proposed Treasury Regulation provides that for purposes
of the PFIC rules, stock acquired upon the exercise of an option will be deemed to have a holding period that includes the period the
U.S. Holder held the public warrants. As a result, if the proposed Treasury Regulations were to apply, and a U.S. Holder were to sell
or otherwise dispose of such public warrants (other than upon exercise of such public warrants for cash) and the Company was a PFIC at
any time during the U.S. Holder’s holding period of such public warrants, any gain recognized generally would be treated as an excess
distribution, taxed as described above. If a U.S. Holder that exercises such public warrants properly makes and maintains a QEF election
with respect to the newly acquired Common Shares (or has previously made a QEF election with respect to Common Shares), the QEF election
will apply to the newly acquired Common Shares. Notwithstanding such QEF election, if the proposed Treasury Regulations were to apply,
the adverse tax consequences relating to PFIC shares, adjusted to take into account the current income inclusions resulting from the QEF
election, would continue to apply with respect to such newly acquired Common Shares (