Filed Pursuant to Rule 424(b)(3)
Registration No. 333-260126
PROSPECTUS SUPPLEMENT NO. 1
(TO PROSPECTUS DATED JULY 12, 2022)
TMC THE METALS
COMPANY INC.
Up to 264,438,297
Common Shares
Up to 9,500,000 Warrants
________________
This prospectus supplement no. 1 (this “Supplement”)
supplements the prospectus dated July 12, 2022 (the “Prospectus”) relating to the issuance by us of up to an aggregate of
24,500,000 of our common shares, without par value (“Common Shares”), which consists of (i) up to 9,500,000 Common Shares
that are issuable upon the exercise of private placement warrants (the “Private Placement Warrants”) originally issued in
a private placement in connection with the initial public offering of our predecessor company, Sustainable Opportunities Acquisition Corp.
(“SOAC”), at an exercise price of $11.50 per Common Share, and (ii) up to 15,000,000 Common Shares that are issuable
upon the exercise of 15,000,000 warrants issued in connection with the initial public offering of SOAC (the “Public Warrants,”
and together with the Private Placement Warrants, the “Warrants”).
The Prospectus and this Supplement also relate to
the resale from time to time by the Selling Securityholders named in the Prospectus (the “Selling Securityholders”) of up
to (i) 9,500,000 Private Placement Warrants, (ii) 9,500,000 Common Shares that may be issued upon exercise of the Private Placement
Warrants, (iii) 11,578,620 Common Shares that may be issued upon exercise of the Allseas Warrant (as defined in the Prospectus),
(iv) 6,759,000 Common Shares held by SOAC’s former directors, transferees of SOAC’s sponsor, Sustainable Opportunities
Holdings LLC (the “Sponsor”), and certain of their transferees (collectively, the “Founder Shares”), (v) 11,030,000
Common Shares issued in the PIPE Financing (as defined in the Prospectus), (vi) 131,178,480 Common Shares issued to certain shareholders
of DeepGreen (as defined in the Prospectus) pursuant to the Business Combination Agreement (as defined in the Prospectus), (vii) 77,277,244
Common Shares issuable to certain shareholders of DeepGreen upon the conversion of DeepGreen Earnout Shares (as defined in the Prospectus)
pursuant to the Business Combination Agreement, (viii) 1,241,000 Common Shares issuable to the transferees of the Sponsor and
their transferees upon the conversion of Sponsor Earnout Shares (as defined in the Prospects) and (ix) 873,953 Common Shares issued
to certain service providers to DeepGreen.
The Prospectus provides you with a general description
of such securities and the general manner in which we and the Selling Securityholders may offer or sell the securities. More specific
terms of any securities that we and the Selling Securityholders may offer or sell may be provided in a prospectus supplement that describes,
among other things, the specific amounts and prices of the securities being offered and the terms of the offering. The prospectus supplement
may also add, update or change information contained in the Prospectus.
We will not receive any proceeds from the sale of
Common Shares or Private Placement Warrants by the Selling Securityholders or of Common Shares by us pursuant to the Prospectus, except
with respect to amounts received by us upon exercise of the Warrants.
However, we will pay the expenses, other than any
underwriting discounts and commissions, associated with the sale of securities pursuant to the Prospectus.
We registered certain of the securities for
resale pursuant to the Selling Securityholders’ registration rights under certain agreements between us and the Selling
Securityholders. Our registration of the securities covered by the Prospectus does not mean that either we or the Selling
Securityholders will issue, offer or sell, as applicable, any of the securities. The Selling Securityholders may offer and sell the
securities covered by the Prospectus in a number of different ways and at varying prices. We provide more information about how the
Selling Securityholders may sell the shares or Warrants in the section entitled “Plan of Distribution” in the
Prospectus.
This Supplement incorporates into the Prospectus
the information contained in our attached current report on Form 8-K which was filed with the Securities and Exchange Commission on August
15, 2022.
You should read this Supplement in conjunction with
the Prospectus, including any supplements and amendments thereto. This Supplement is qualified by reference to the Prospectus except to
the extent that the information in this Supplement supersedes the information contained in the Prospectus. This Supplement is not complete
without, and may not be delivered or utilized except in connection with, the Prospectus, including any supplements and amendments thereto.
Our Common Shares and Public Warrants are listed
on Nasdaq under the symbols “TMC” and “TMCWW,” respectively. On August 12, 2022, the closing price of our Common
Shares was $1.00 and the closing price for our Public Warrants was $0.13.
________________
Investing in our securities involves a high degree
of risk. See “Risk Factors” beginning on page 13 of the Prospectus and in the other documents that are incorporated by reference
in the Prospectus.
Neither the Securities and Exchange Commission
nor any state securities commission has approved or disapproved of these securities or determined if this Supplement is truthful or complete.
Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is August
15, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
August 12, 2022
TMC THE METALS COMPANY INC.
(Exact name of registrant as specified in its charter)
| British Columbia, Canada |
001-39281 |
Not Applicable |
(State or other jurisdiction of
incorporation) |
(Commission File Number) |
(IRS Employer
Identification No.) |
| |
|
|
595 Howe Street, 10th Floor
Vancouver, British Columbia |
|
V6C 2T5 |
(Address of principal executive
offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: (604) 631-3115
Not
applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on
which registered |
| TMC Common Shares without par value |
|
TMC |
|
The Nasdaq Stock Market LLC |
| Redeemable warrants, each whole warrant exercisable for one TMC Common Share, each at an exercise price of $11.50 per share |
|
TMCWW |
|
The Nasdaq Stock Market LLC |
Indicate by check mark whether
the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging
growth company x
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 1.01. | Entry into a Material Definitive Agreement. |
On August 12, 2022, TMC
the metals company Inc. (the “Company”) entered into three securities purchase agreements
for the private placement of an aggregate of 37,978,680 of the Company's common shares ("Common Shares") (the "Private Placement").
The Company entered into a securities purchase agreement (the “PIPE Purchase Agreement”) with the purchasers
named therein (the “PIPE Purchasers”) for the issuance and sale of an aggregate of 31,625,000 Common Shares at a
purchase price of $0.80 per share, a separate securities purchase agreement with Gerard Barron, the Company’s Chief Executive
Officer and Chairman, for the issuance and sale of 103,680 Common Shares at $0.9645 per share, the consolidated closing bid price
per Common Share on August 11, 2022 (the “Barron Purchase Agreement”), and a separate securities purchase agreement with
ERAS Capital LLC, the family fund of the Company's director, Andrei Karkar, for the issuance and sale of 6,250,000 common shares at
a purchase price of $0.80 per share (the “ERAS Purchase Agreement”, together with the PIPE Purchase Agreement and the
Barron Purchase Agreement, the “Purchase Agreements”). The Common Shares issuable in the Private Placement pursuant to
the Purchase Agreements are referred to herein as the “Shares” and the PIPE Purchasers, together with Mr. Barron and
ERAS Capital LLC are referred to herein as the “Purchasers.” The Company expects to receive aggregate gross proceeds of
approximately $30.4
million this quarter from the Private Placement and net proceeds of approximately $30 million, after deducting placement
agent fees and offering expenses.
The Company intends to use
the net proceeds from the Private Placement for working capital and general corporate purposes.
In addition, pursuant to
the Purchase Agreements, the Company also agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”)
on or before September 16, 2022 (subject to certain exceptions) for purposes of registering the resale of the Shares, to use its commercially
reasonable efforts to have such registration statement declared effective within the time period set forth in the Purchase Agreements,
and to keep such registration statement effective for up to three years.
The Purchase Agreements contain
customary closing conditions, representations, warranties and agreements by the Company, indemnification obligations of the Company and
the Purchasers, including for liabilities under the Securities Act of 1933, as amended (the “Securities Act”), and other obligations
of the parties. The representations, warranties and covenants contained in the Purchase Agreements were made only for purposes of such
Purchase Agreements and are made as of specific dates; are solely for the benefit of the parties (except as specifically set forth therein);
may be subject to qualifications and limitations agreed upon by the parties in connection with negotiating the terms of the Purchase Agreements,
instead of establishing matters as facts; and may be subject to standards of materiality and knowledge applicable to the contracting parties
that differ from those applicable to the investors generally. Investors should not rely on the representations, warranties and covenants
or any description thereof as characterizations of the actual state of facts or condition of the Company.
The Private Placement
is exempt from the registration requirements of the Securities Act pursuant to the exemption for transactions by an issuer not
involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in
reliance on similar exemptions under applicable state laws. The Purchasers represented that they were accredited investors within
the meaning of Rule 501(a) of Regulation D, and were acquiring the securities for investment only and not with a view towards, or
for resale in connection with, the public sale or distribution thereof. The securities were offered without any general solicitation
by the Company or its representatives. The securities sold and issued in the Private Placement will not be registered under the
Securities Act or any state securities laws and may not be offered or sold in the United States absent registration with the SEC or
an applicable exemption from the registration requirements.
The foregoing
description of the Purchase Agreements does not purport to be complete and is qualified in its entirety by reference to the form of
the PIPE Purchase Agreement, the Barron Purchase Agreement and the ERAS Purchase Agreement, filed as Exhibits 10.1, 10.2 and 10.3,
respectively, to this Current Report on Form 8-K and incorporated herein by reference.
| Item 3.02. | Unregistered Sales of Equity Securities. |
The disclosures set forth
in Item 1.01 above are incorporated in this Item 3.02.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
Forward-Looking Statements
Statements in this report that are not
strictly historical in nature are forward-looking statements. These statements include but are not limited to statements regarding
the completion of the Private Placement and the receipt and anticipated use of proceeds therefrom, and related to the anticipated
filing of a registration statement to cover resales of the Shares. These statements are only predictions based on current
information and expectations and involve a number of risks and uncertainties. Actual events or results may differ materially from
those projected in any of such statements due to various factors, including risks and uncertainties associated with market
conditions and the satisfaction of customary closing conditions related to the Private Placement. For a discussion of these and
other factors, please refer to the Company’s annual report on Form 10-K for the year ended December 31, 2021 as well as the
Company’s subsequent filings with the SEC. You are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| |
TMC THE METALS COMPANY INC. |
| |
|
| |
|
| Date: August 15, 2022 |
By: |
/s/ Craig Shesky |
| |
Name: Craig Shesky |
| |
Title: Chief Financial Officer |
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