Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 168

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 168
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 holding period of a U.S. Holder of Common Shares and the U.S. Holder did not make either
a qualifying electing fund, or QEF, election or a mark-to-market election, or collectively, the PFIC Elections, for the first taxable
year of the Company in which it was treated as a PFIC, and in which the U.S. Holder held (or was deemed to hold) such shares, or such
U.S. Holder does not otherwise make an applicable purging election described below, such U.S. Holder generally will be subject to special
and adverse rules with respect to (i) any gain recognized by the U.S. Holder on the sale or other disposition of its Common
Shares and (ii) any “excess distribution” made to the U.S. Holder (generally, any distributions to such U.S. Holder during
a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect
of the Common Shares during the three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder’s holding period
for the Common Shares).

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Under these rules:

| · | the U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s holding period for the 
 Common Shares;                                                                                                        |

| · | the amount allocated to the U.S. Holder’s taxable year in which the U.S. Holder recognized the gain or received the excess distribution, 
 and to any period in the U.S. Holder’s holding period before the first day of the Company’s first taxable year in which the              
 Company is a PFIC, will be taxed as ordinary income;                                                                                     |

| · | the amount allocated to other taxable years (or portions thereof) of the U.S. Holder and included in its holding period will be taxed 
 at the highest tax rate in effect for that year and applicable to the U.S. Holder; and                                                |

| · | an additional tax equal to the interest charge generally applicable to underpayments of tax will be imposed on the U.S. Holder with 
 respect to the tax attributable to each such other taxable year of the U.S. Holder.                                                 |

PFIC Elections

In general, if the Company is determined to be
a PFIC, a U.S. Holder may avoid the adverse PFIC tax consequences described above in respect of Common Shares by making