Company: QSEA
Filing Date: 2025-02-24
Form Type: S-1
Source: 0001829126-25-001168
Chunk: 133

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-24
Form: S-1
Chunk 133
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 that covenant; |

| ● | our immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand; |

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| ● | our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding; |

| ● | our inability to pay dividends on our ordinary share; |

| ● | using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our ordinary shares if declared, our ability to pay expenses, make capital expenditures and acquisitions, and fund other general corporate purposes; |

| ● | limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate; |

| ● | increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; |

| ● | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, and execution of our strategy; and |

| ● | other disadvantages compared to our competitors who have less debt. |

Since our Sponsor paid only approximately $0.0104 per share for the founder shares, certain of our officer, director, and director nominees could potentially make a substantial profit even if we acquire a target business that subsequently declines in value.

On November 5, 2024, our Sponsor paid
$25,000 in exchange for 1,725,000 ordinary shares, or approximately $0.0145 per ordinary share. On February 12, 2025, the Company
and the Sponsor entered into the First Amendment to the Subscription Agreement, pursuant to which the purchased amount of shares was
adjusted to 2,415,000 ordinary shares, $0.0104 per ordinary share. The per ordinary share purchase price of the founder shares was
determined by dividing the amount of cash contributed to the company by the aggregate number of founder shares issued. After giving
effect of forfeiture of 315,000 ordinary shares assuming that the underwriter’s overallotment option is not exercised, the
resulting purchase price will be approximately $0.0119 per share. Our Chief Executive Officer owns 100% of the interest of our
Sponsor. No other party has any material indirect interest in our Sponsor. As a result, the low acquisition cost of the founder
shares creates an economic incentive whereby our Chief Executive Officer could potentially make a