Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 101

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 101
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 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 (which generally will be deemed
to have a holding period for purposes of the PFIC rules that includes the period the U.S. Holder held the public warrants), unless
the U.S. Holder makes a purging election under the PFIC rules described in the following paragraph.

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If the Company is treated as a PFIC and a U.S.
Holder failed or was unable to timely make a PFIC Election for prior periods, a U.S. Holder might seek make a purging election to rid
the Common Shares of the PFIC taint. A purging election might be desirable if, for example, a U.S. Holder misses the deadline for filing
a QEF election for a prior period, or if the Common Shares were acquired through the exercise of public warrants with a holding period
that includes the period the warrants were held, either as a result of the application of the proposed Treasury Regulations, or because
the Common Shares are acquired through a cashless exercise that is treated as a recapitalization. Under one type of purging election,
the U.S. Holder will be deemed to have sold such shares at their fair market value and any