Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 163

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 163
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istributions on Common Shares

Subject to the PFIC rules discussed below
under the heading “- Passive Foreign Investment Company Rules,” distributions on Common Shares will generally be taxable
as a dividend for U.S. federal income tax purposes to the extent paid from the Company’s current or accumulated earnings and profits,
as determined under U.S. federal income tax principles. Distributions in excess of the Company’s current and accumulated earnings
and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s adjusted
tax basis in its Common Shares. Any remaining excess will be treated as gain realized on the sale or other disposition of the Common Shares
and will be treated as described below under the heading “- Tax Consequences of Ownership and Disposition of Common Shares and Public Warrants - Sale, Taxable Exchange or Other Taxable Disposition of Common Shares and Public Warrants.” The amount of any
such distribution will include any amounts withheld by us (or another applicable withholding agent) in respect of Canadian income taxes.
Any amount treated as dividend income will be treated as foreign-source dividend income. Amounts treated as dividends that the Company
pays to a U.S. Holder that is a taxable corporation generally will be taxed at regular rates and will not qualify for the dividends received
deduction generally allowed to U.S. corporations in respect of dividends received from other U.S. corporations. With respect to non-corporate
U.S. Holders, under tax laws currently in effect and subject to certain exceptions (including, but not limited to, dividends treated as
investment income for purposes of investment interest deduction limitations), dividends generally will be taxed at the lower applicable
long-term capital gains rate only if Common Shares are readily tradable on an established securities market in the United States or the
Company is eligible for benefits under an applicable tax treaty with the United States, and the Company is not treated as a PFIC with
respect to such U.S. Holder at the time the dividend was paid or in the preceding year and provided certain holding period requirements
are met. The amount of any dividend distribution paid in Canadian dollars will be the U.S. dollar amount calculated by reference to the
exchange rate in effect on the date of actual or constructive receipt, regardless of whether the payment is in fact converted into U.S.
dollars at that time. A U.S. Holder may have foreign currency gain or loss if the dividend is converted into U.S. dollars after the date
of receipt.