Company: QSEA
Filing Date: 2025-03-11
Form Type: S-1/A
Source: 0001829126-25-001676
Chunk: 231

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-11
Form: S-1/A
Chunk 231
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 that even a small reduction in
the proportionate interest of a small minority shareholder in a publicly-held corporation who exercises no control over corporate affairs
may constitute such a “meaningful reduction.” A U.S. Holder should consult with its own tax advisors as to the tax consequences
of a redemption.

If none of the foregoing tests are satisfied, then
the redemption will be treated as a corporate distribution and the tax effects will be as described under “U.S. Holders —
Taxation of Distributions” above. After the application of those rules, any remaining tax basis of the U.S. Holder in the redeemed
ordinary shares will be added to the U.S. Holder’s adjusted tax basis in its remaining shares, or, if it has none, to the U.S.
Holder’s adjusted tax basis in its rights or possibly in other stock constructively owned by it.

<div align='center'>146</div>

Acquisition of ordinary shares Pursuant to Rights

The treatment of the rights to acquire ordinary shares
is uncertain. The rights may be viewed as a forward contract, derivative security or similar interest in our company (analogous to a
warrant or option with no exercise price), and thus the holder of the rights would not be viewed as owning the ordinary shares issuable
pursuant to the rights until such ordinary shares are actually issued. There may be other alternative characterizations of the rights
that the IRS may successfully assert, including that the rights are treated as equity in our company at the time the rights are issued.

The tax consequences of an acquisition of our ordinary
shares pursuant to rights are unclear and will depend on the treatment of any initial business combination. Accordingly, U.S. Holders
should consult their tax advisors regarding the tax consequences of an acquisition of ordinary shares pursuant to rights and the consequences
of any initial business combination.

Passive Foreign Investment Company Rules

A non-U.S. corporation will be classified as a PFIC
for United States federal income tax purposes if either (i) at least 75% of its gross income in a taxable year, including its pro rata
share of the gross income of any corporation in which it is considered to own at least 25% of the shares by value, is passive income
or (ii) at least 50% of its assets in a taxable year (ordinarily determined based on fair market value and averaged quarterly over the
year), including its pro rata share of the assets of any corporation in which it is considered to own