Company: TMCWW
Filing Date: 2025-05-12
Form Type: 424B5
Source: 0001104659-25-047372
Chunk: 98

Company: TMC the metals Co Inc.
Filing Date: 2025-05-12
Form: 424B5
Chunk 98
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ordinarily determined based on fair market value
and averaged quarterly over the year), including its pro rata share of the assets of any corporation in which it is considered to own
at least 25% of the shares by value, are held for the production of, or produce, passive income, or the Asset Test. Passive income generally
includes dividends, interest, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business)
and gains from the disposition of passive assets.

Based on our initial assessment,
we do not believe that the Company was classified as a PFIC for U.S. federal income tax purposes for the taxable year ending December 31,
2021. However, the application of the PFIC rules is subject to uncertainty in several respects, and we cannot assure you that the
IRS will not take a contrary position. Furthermore, whether the Company is classified as a PFIC is a factual determination that must
be made annually after the close of each taxable year. Accordingly, there can be no assurance with respect to the Company’s status
as a PFIC for the current or any future taxable year. Although PFIC status is generally determined annually, if the Company is determined
to be a PFIC for any taxable year (or portion thereof) that is included in the 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).

Under