Company: QSEA
Filing Date: 2025-02-03
Form Type: DRS/A
Source: 0001829126-25-000616
Chunk: 122

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-03
Form: DRS/A
Chunk 122
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 of operations.

Our initial business combination is likely to be with a private company for which little public data may be available which means that our estimates as to profitability risk being erroneous.

Our initial business combination strategy may include evaluating whether to combine with a privately held company. The risks associated with evaluating privately held companies include limited availability of public information. As a result, our conclusions as to profitability might not be correct.

We may issue our shares to investors in connection with our initial business combination at a price that is less than the prevailing market price of our shares at that time. In connection with our initial business combination, we may issue shares to investors in private placement transactions (so-called “PIPE” transactions) at a price of $10.00 per unit. The purpose of such issuances will be to enable us to provide sufficient liquidity to the post-business combination entity. The price of the ordinary shares we issue may therefore be less, and potentially significantly less, than the market price for our public shares at such time. Any such issuances would dilute the interest of our public shareholders, and could result in significant dilution if the issuance price was significantly less than $10.00 per share.

In the event we issue additional shares to investors in a PIPE in connection with our efforts to consummate an initial business combination, there may be an adverse impact and give rise to increased costs and risks that could negatively impact our operations and profitability.

In connection with the completion of our initial business combination, we may seek additional financing, including through PIPE transactions. As disclosed above, this financing could be critical to ensuring the successful completion of the business combination, particularly if there is a shortfall in capital from other sources. However, such arrangements may give raise to an increased cost to consummate our business combination and adversely affect investors, including certain costs and terms that are unique to the business combination process and differ from those typically seen in a traditional initial public offering.

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In particular, if we issue additional shares to investors in a PIPE to complete our business combination process, this PIPE financing process often involves negotiations with investors regarding the terms of PIPE financings, which can include the issuance of additional shares or securities that dilute existing shareholders. The sale of these additional shares may result in an increased number of outstanding shares and a corresponding decrease in the ownership percentage of existing shareholders, which could impact the value of their investments. The proceeds from the PIPE financing are intended to provide the liquidity necessary to complete the business combination, but this financing structure involves certain costs that