Company: QSEA
Filing Date: 2025-02-24
Form Type: S-1
Source: 0001829126-25-001168
Chunk: 125

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-24
Form: S-1
Chunk 125
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 that this presumes no other alternative investment wherein the post-combination capital structure would be sufficient to satisfy the related party loan obligation.

We cannot assure you that our Chief Executive Officer and therefore Sponsor might have more influence on the board of directors’ decision to propose an investment to the shareholders than as would be the case with other special purpose acquisition company offerings.

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<div align='center'>RISKS RELATING TO OUR SECURITIES</div>

The securities in which we invest the proceeds held in the trust account could bear a negative rate of interest, which could reduce the interest income available for payment of taxes or reduce the value of the assets held in trust such that the per-share redemption amount received by shareholders may be less than $10.05 per public share.

The net proceeds of this offering and certain
proceeds from the sale of the private units, in the amount of $60,300,000 (or $69,345,000 if the over-allotment option is exercised in
full), will be held in an interest-bearing trust account. The proceeds held in the trust account may be held in demand deposit or cash
accounts or be invested only in U.S. government treasury bills with a maturity of 185 days or less or in money market funds meeting certain
conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. While
short-term U.S. treasury obligations currently yield a positive rate of interest, they have briefly yielded negative interest rates in
recent years. Central banks in Europe and Japan pursued interest rates below zero in recent years, and the Open Market Committee of the
Federal Reserve has not ruled out the possibility that it may in the future adopt similar policies in the United States. In the event
of very low or negative yields, the amount of interest income (which we may use to pay our taxes, if any) would be reduced. In the event
that we are unable to complete our initial business combination, our public shareholders are entitled to receive their pro-rata share
of the proceeds then held in the trust account, plus any interest income (net of taxes payable). If the balance of the trust account
is reduced below $60,300,000 (or $69,345,000 if the over-allotment option is exercised in full) as a result of negative interest rates,
the amount of funds in the trust account available for distribution to our public shareholders may be reduced below