Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 166

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 166
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. Holder would recognize capital gain or loss in an amount equal to the difference between the fair market value of the public
warrants deemed surrendered and the U.S. Holder’s tax basis in the public warrants deemed surrendered. In this case, a U.S. Holder’s
tax basis in the shares of Common Shares received would equal the sum of the U.S. Holder’s tax basis in the public warrants exercised,
and the exercise price of such public warrants. It is unclear whether a U.S. Holder’s holding period for the shares of Common Shares
would commence on the date of exercise of the public warrant or the day following the date of exercise of the public warrant; in either
case, the holding period will not include the period during which the U.S. Holder held the public warrant.

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Due to the absence of authority on the U.S. federal
income tax treatment of a cashless exercise, including when a U.S. Holder’s holding period would commence with respect to the shares
of Common Shares received, there can be no assurance as to which, if any, of the alternative tax consequences and holding periods described
above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders are urged to consult their tax advisors regarding the tax
consequences of a cashless exercise.

If the Company redeems public warrants for
cash or if the Company purchases public warrants in an open market transaction, such redemption or purchase generally will be
treated as a taxable disposition to the U.S. Holder, taxed as described above 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.”

Adjustment to Exercise Price

Under Section 305 of the Code, if certain
adjustments are made (or not made) to the number of shares to be issued upon the exercise of a public warrant or to the public warrant’s
exercise price, a U.S. Holder may be deemed to have received a constructive distribution with respect to the warrant, which could result
in adverse consequences for the U.S. Holder, including the inclusion of dividend income (with the consequences generally as described
above under the heading “- Tax Consequences of Ownership and Disposition of Common Shares and Public Warrants - Dividends and Other Distributions on Common Shares”). The rules governing constructive distributions as a result of certain adjustments
with respect to a public