Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 356

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 356
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 share by any prior distributions treated
as a return of capital. Long-term capital gain realized by a non-corporate U.S. Holder is currently eligible to be taxed at reduced
rates. See “— Exercise, Lapse or Redemption of a Public Warrant” below for a discussion regarding a U.S. Holder’s
basis in a public share acquired pursuant to the exercise of a public warrant. The deduction of capital losses is subject to certain
limitations. U.S. Holders who recognize losses with respect to a disposition of our securities should consult their own tax advisors
regarding the tax treatment of such losses.

Redemption of Public Shares

Subject to the PFIC rules
discussed below, in the event that a U.S. Holder’s public 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
public shares in an open market transaction, the treatment of the transaction for United States federal income tax purposes will
depend on whether the redemption or purchase by us qualifies as a sale or exchange of the public shares under Section 302 of the
Code. If the redemption or purchase by us qualifies as a sale or exchange of public shares, the U.S. Holder will be treated as described
under “— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Public Shares, Public Warrants”above. If the redemption or purchase by us does not qualify as a sale of public shares, the U.S. Holder will be treated as receiving
a corporate distribution with the tax consequences described above under “— Taxation of Distributions.”
Whether a redemption or purchase by us qualifies for treatment as a sale or exchange will depend largely on the total number of our shares
treated as held by the U.S. Holder (including any public shares constructively owned by the U.S. Holder described in the following
paragraph) relative to all of our shares issued and outstanding both before and after such redemption or purchase. The redemption or
purchase by us of public shares generally will be treated as a sale or exchange of the public shares (rather than as a corporate distribution)
if such redemption or purchase by us (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