Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 303

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 303
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 redeemed or (ii) all of the shares of the Pubco Common Stock actually owned by the U.S. Holder are redeemed and the U.S. Holder is eligible to waive, and effectively waives in accordance with specific rules, the
attribution of stock owned by certain family members and the U.S. Holder does not constructively own any other Pubco Common Stock. The redemption of the Pubco Common Stock will not be essentially equivalent to a dividend if a U.S. Holder’s
conversion results in a “meaningful reduction” of the U.S. Holder’s proportionate interest in CSLM. Whether the redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in CSLM will depend on the
particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a small minority shareholder in a publicly held corporation who exercises no control over corporate
affairs may constitute such a “meaningful reduction.” A U.S. Holder should consult with its own tax advisors as to the tax consequences of a redemption.

If none of the foregoing tests is satisfied, then the redemption will be treated as a corporate distribution.

After the application of those rules regarding corporate distributions, any remaining tax basis of the U.S. Holder in the redeemed ordinary
shares will be added to the U.S. Holder’s adjusted tax basis in its remaining Pubco Common Stock, or, if it has none, to the U.S. Holder’s adjusted tax basis in its Pubco Warrants or possibly in other Pubco Common Stock constructively
owned by it. Shareholders who hold different blocks of Pubco Common Stock (generally, shares of CSLM purchased or acquired on different dates or at different prices) should consult their tax advisors to determine how the above rules apply to them.

Because the Domestication will occur prior to the redemption of U.S. Holders that exercise redemption rights with respect to Public
Shares, U.S. Holders exercising such redemption rights, will be deemed to have exchanged their Public Shares for shares of Pubco Common Stock and be subject to the potential tax consequences of Section 367(b) of the Code and the tax rules
relating to PFICs as a result of the Domestication (as discussed further above).

All U.S. Holders are urged to consult their tax advisors
as to the tax consequences to them of a redemption of all or a portion of their Pubco Common Stock pursuant to an exercise of redemption rights.

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