Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 102

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 102
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 gain recognized on such deemed sale will be
treated as an excess distribution, as described above. Under another type of purging election, the Company will be deemed to have made
a distribution to the U.S. Holder of such U.S. Holder’s pro rata share of the Company’s earnings and profits as determined
for U.S. federal income tax purposes. In order for the U.S. Holder to make the second election, the Company must also be determined to
be a “controlled foreign corporation” as defined by the Code (which is not currently expected to be the case). As a result
of either purging election, the U.S. Holder will have a new basis and holding period in the Common Shares acquired upon the exercise
of the public warrants solely for purposes of the PFIC rules.

The QEF election is made
on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder generally makes
a QEF election by attaching a completed IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company
or Qualified Electing Fund), including the information provided in a PFIC Annual Information Statement, to a timely filed U.S. federal
income tax return for the tax year to which the election relates. Retroactive QEF elections generally may be made only by filing a protective
statement with such return and if certain other conditions are met or with the consent of the IRS. U.S. Holders are urged to consult
their tax advisors regarding the availability and tax consequences of a retroactive QEF election under their particular circumstances.

Related PFIC Rules

If the Company is a PFIC
and, at any time, has a foreign subsidiary that is classified as a PFIC, a U.S. Holder generally would be deemed to own a proportionate
amount of the shares of such lower-tier PFIC, and generally could incur liability for the deferred tax and interest charge described
above if the Company receives a distribution from, or disposes of all or part of its interest in, the lower-tier PFIC, or the U.S. Holder
otherwise was deemed to have disposed of an interest in the lower-tier PFIC. In certain circumstances, a U.S. Holder may make a QEF election
with respect to any lower-tier PFIC.

A U.S. Holder that owns
(or is deemed to own) shares in a PFIC during any taxable year of the U.S. Holder, may