Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 100

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 100
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 knowledge of its status as a PFIC in the future or of the required information to be provided.

Alternatively, if the Company
is a PFIC and Common Shares constitute “marketable stock,” a U.S. Holder may avoid the adverse PFIC tax consequences discussed
above if such U.S. Holder makes a mark-to-market election with respect to such shares for the first taxable year in which it holds (or
is deemed to hold) Common Shares and each subsequent taxable year. Such U.S. Holder generally will include for each of its taxable years
as ordinary income the excess, if any, of the fair market value of its Common Shares at the end of such year over its adjusted basis
in its Common Shares. The U.S. Holder also will recognize an ordinary loss in respect of the excess, if any, of its adjusted basis of
its Common Shares over the fair market value of its Common Shares at the end of its taxable year (but only to the extent of the net amount
of previously included income as a result of the mark-to-market election). The U.S. Holder’s basis in its Common Shares will be
adjusted to reflect any such income or loss amounts, and any further gain recognized on a sale or other taxable disposition of its Common
Shares will be treated as ordinary income. Currently, a mark-to-market election may not be made with respect to public warrants.

The mark-to-market election
is available only for “marketable stock,” generally, stock that is regularly traded on a national securities exchange that
is registered with the SEC, including the Nasdaq (on which Common Shares are intended to be listed), or on a foreign exchange or market
that the IRS determines has rules sufficient to ensure that the market price represents a legitimate and sound fair market value.
If made, a mark-to-market election would be effective for the taxable year for which the election was made and for all subsequent taxable
years unless the Common Shares cease to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consents
to the revocation of the election. U.S. Holders are urged to consult their tax advisors regarding the availability and tax consequences
of a mark-to-market election with respect to Common Shares under their particular circumstances.

The application of the PFIC
rules to public warrants is unclear. A proposed Treasury Regulation issued under these rules generally treats an “option”
(which would include a public warrant) to acquire the stock of a PFIC as stock of the PFIC, while a final Treasury