Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 232

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 232
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’s Ordinary
Shares are redeemed pursuant to the redemption provisions described in this prospectus under “Description of Securities —
Ordinary Shares” or if we purchase a U.S. Holder’s ordinary shares in an open market transaction (each referred to herein
as a “redemption”), the treatment of the redemption for U.S. federal income tax purposes will depend on whether it qualifies
as a sale or exchange of the ordinary shares under Section 302 of the Code. If the redemption qualifies as a sale or exchange of
the ordinary shares under the tests described below, the U.S. Holder will be treated as described under “U.S. Holders — Gain
or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Our Ordinary Shares and Rights” above. If the redemption does
not qualify as a sale or exchange of the ordinary share, the U.S. Holder will be treated as receiving a corporate distribution with the
tax consequences described above under “U.S. Holders — Taxation of Distributions.” Whether a redemption qualifies for
sale or exchange treatment will depend largely on the total number of our shares treated as held by the U.S. Holder (including any shares
constructively owned by the U.S. Holder as described in the following paragraph) relative to all of our shares outstanding both before
and after such redemption. The redemption of our ordinary shares generally will be treated as a sale or exchange of the ordinary shares
(rather than as a corporate distribution) if, within the meaning of Section 302 of the Code, such redemption (i) is “substantially
disproportionate” with respect to the U.S. Holder, (ii) results in a “complete termination” of the U.S. Holder’s
interest in us or (iii) is “not essentially equivalent to a dividend” with respect to the U.S. Holder.

In determining whether any of the foregoing tests
are satisfied, a U.S. Holder must take into account not only shares of our stock actually owned by the U.S. Holder, but also shares of
our stock that are constructively owned by it. A U.S. Holder may constructively own, in addition to stock owned directly, stock owned
by certain related individuals and entities in which the U.S. Holder has an interest or that have an interest in such U.S. Holder, as
well as any stock the U.S. Holder has a right to acquire by exercise of an option, which would generally include ordinary shares which
could be