Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 169

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 169
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 and maintaining
a timely and valid QEF election (if eligible to do so) to include in income its pro rata share of the Company’s net capital gains
(as long-term capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed,
in the first taxable year of the U.S. Holder in which or with which the Company’s taxable year ends and each subsequent taxable
year. A U.S. Holder generally may make a separate election to defer the payment of taxes on undistributed income inclusions under the
QEF rules, but if deferred, any such taxes will be subject to an interest charge.

In order to comply with the requirements of a
QEF election, a U.S. Holder must receive a PFIC Annual Information Statement from us. If the Company determines that it is a PFIC, the
Company intends to provide the information necessary for U.S. Holders to make or maintain a QEF election, including information necessary
to determine the appropriate income inclusion amounts for purposes of the QEF election. However, there is also no assurance that the Company
will have timely knowledge of its status as a PFIC in the future or of the required information to be provided.

Alternatively, if the Company is a PFIC and Common
Shares constitute “marketable stock,” a U.S. Holder may avoid the adverse PFIC tax consequences discussed above if such U.S.
Holder makes a mark-to-market election with respect to such shares for the first taxable year in which it holds (or is deemed to hold)
Common Shares and each subsequent taxable year. Such U.S. Holder generally will include for each of its taxable years as ordinary income
the excess, if any, of the fair market value of its Common Shares at the end of such year over its adjusted basis in its Common Shares.
The U.S. Holder also will recognize an ordinary loss in respect of the excess, if any, of its adjusted basis of its Common Shares over
the fair market value of its Common Shares at the end of its taxable year (but only to the extent of the net amount of previously included
income as a result of the mark-to-market election). The U.S. Holder’s basis in its Common Shares will be adjusted to reflect any
such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of its Common Shares will be treated
as ordinary income. Currently, a mark-to-market election may not be made with respect to public warrants