Company: QSEA
Filing Date: 2025-02-03
Form Type: DRS/A
Source: 0001829126-25-000616
Chunk: 123

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-03
Form: DRS/A
Chunk 123
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 would not typically be associated with a traditional offering. These costs may include, but are not limited to, fees paid to the investors, discounts on share prices, or other financial incentives provided to ensure the investors' participation in the financing.

Moreover, the agreements related to these PIPE investments are often structured with the goal of ensuring a return on investment for the PIPE investors, in exchange for providing the necessary capital to facilitate the completion of our business combination. These arrangements are designed to make certain that we have sufficient liquidity to complete the transaction, but they may also result in terms that prioritize the interests of the PIPE investors, which could be at the expense of the existing public shareholders.

We believe that such financing arrangements are a necessary aspect of the business combination process and may enable the completion of the business combination on favorable terms. However, the process may involve potential dilutive effect of the issuance of additional shares and the associated costs that are specific to this type of financing, which are not typically present in a traditional initial public offering of shares. The terms of these arrangements are intended to align the interests of the investors with the successful completion of the transaction, but they could result in outcomes that differ from those expected in a traditional public offering.

The requirement that our initial business combination occur with one or more target businesses having an aggregate fair market value equal to at least 80% of the value of the trust account at the time of the execution of a definitive agreement for our initial business combination may limit the type and number of companies that we may complete such a business combination with.

Pursuant to the Nasdaq listing rules, our initial business combination must occur with one or more target businesses having an aggregate fair market value equal to at least 80% of the value of the trust account (excluding taxes payable on the income earned on the trust account) at the time of the execution of a definitive agreement for our initial business combination. This restriction may limit the type and number of companies that we may complete a business combination with. If we are unable to locate a target business or businesses that satisfy this fair market value test, we may be forced to liquidate and you will only be entitled to receive your pro rata portion of the funds in the trust account. If we are no longer listed on Nasdaq, we will not be required to satisfy the 80% test if, pursuant to shareholder vote, we elect to remove this requirement from our Memorandum and Articles of Association.

Our ability to consummate an attractive business combination may be impacted by the market for initial public offerings.