Company: QSEA
Filing Date: 2025-02-24
Form Type: S-1
Source: 0001829126-25-001168
Chunk: 231

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-24
Form: S-1
Chunk 231
---
 is “substantially
disproportionate” with respect to the U.S. Holder, (ii) results in a “complete termination” of the U.S. Holder’s
interest in us or (iii) is “not essentially equivalent to a dividend” with respect to the U.S. Holder.

In determining whether any of the foregoing tests
are satisfied, a U.S. Holder must take into account not only shares of our stock actually owned by the U.S. Holder, but also shares of
our stock that are constructively owned by it. A U.S. Holder may constructively own, in addition to stock owned directly, stock owned
by certain related individuals and entities in which the U.S. Holder has an interest or that have an interest in such U.S. Holder, as
well as any stock the U.S. Holder has a right to acquire by exercise of an option, which would generally include ordinary shares which
could be acquired pursuant to the exchange of the rights. In order to meet the “substantially disproportionate” test, the
percentage of our outstanding voting shares actually and constructively owned by the U.S. Holder immediately following the redemption
of ordinary shares must, among other requirements, be less than 80% of the percentage of our outstanding voting stock actually and constructively
owned by the U.S. Holder immediately before the redemption. Prior to our initial business combination, the ordinary shares may not be
treated as voting shares for this purpose and, consequently, this substantially disproportionate test may not be applicable. There will
be a complete termination of a U.S. Holder’s interest if either (i) all of our shares actually and constructively owned by the
U.S. Holder are redeemed or (ii) all of our shares actually owned by the U.S. Holder are redeemed and the U.S. Holder is eligible to
waive, and effectively waives in accordance with specific rules, the attribution of shares owned by certain family members and the U.S.
Holder does not constructively own any other shares of our stock. The redemption of the ordinary shares will not be essentially equivalent
to a dividend with respect to a U.S. Holder if it results in a “meaningful reduction” of the U.S. Holder’s proportionate
interest in us. Whether the redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in us will
depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a