Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 331

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 331
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 of exercise of the warrants; in either case, the holding period
will not include the period during which the U.S. Holder held the warrants. If the cashless exercise were treated as a recapitalization,
the holding period of the Class A ordinary shares received would include the holding period of the warrants.

It is also possible that a cashless exercise could be treated in part as a taxable
exchange in which gain or loss would be recognized. In such event, a U.S. Holder could be deemed to have surrendered a number of warrants equal to the number
of Class A ordinary shares having a value equal to the exercise price for the total number
of warrants to be exercised. In such case, subject to the PFIC rules discussed below,
the U.S. Holder would recognize capital gain or loss with respect to the warrants deemed surrendered
in an amount equal to the difference between the fair market value of the Class A ordinary shares that would have been received in a regular exercise of the warrants
deemed surrendered and the U.S. Holder’s tax basis in the warrants deemed surrendered. In this case, a U.S. Holder’s aggregate tax basis in the Class A ordinary shares received would equal the sum of the U.S. Holder’s initial investment in the warrants deemed exercised (i.e., the portion of the U.S. Holder’s purchase price for the units that is allocated to the warrants, as described above under “— Allocation of Purchase Price and Characterization of a Unit”) and the aggregate exercise
price of such warrants. It is unclear whether a U.S. Holder’s holding period for the Class A ordinary shares would commence on the date of exercise of the warrants or the day following the date of exercise of the warrants; in either case, the holding period
will not include the period during which the U.S. Holder held the warrants.

Due to the absence of authority on the United States federal income tax treatment of a cashless exercise, including when a U.S. Holder’s holding period would commence with respect to the Class A ordinary share received, there can be no assurance regarding which, if any, of the
alternative tax consequences and holding periods described above would be adopted
by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax advisors regarding the tax consequences of a cashless
exercise.

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Subject to the PFIC
rules described below, if we redeem warrants for cash pursuant to the redemption provisions described in the section of this prospectus