Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 646

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 646
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 divided by $4.94.

Warrant issuance –Upon the conversion of the April 2024 Convertible Note to common stock, the Company shall issue the
holder a warrant to purchase 7,500 shares of common stock of CSLM with a per share exercise price of $11.50.

Subordination –Upon the occurrence of any event of default (as described in the April 2024 Convertible Note Agreement and discussed below), the April 2024 Convertible Note shall become junior and subordinate to the January 2024 Convertible Notes.

The April 2024 Convertible Note has customary events of default, are fully secured by the assets of the Company and because the conversion
feature does not meet the definition of a derivative are being accounted for at amortized cost. The proceeds of the April 2024 Convertible Note will be used for working capital purposes.

On February 5, 2025, the conversion price of the April 2024 Convertible Promissory Notes with principal amount of $125,000 was amended to
$3.15 from the original conversion price of $4.94.

The Company evaluated the conversion feature of April 2024 Convertible Note offering
for embedded derivatives in accordance with ASC 815, Derivatives and Hedging, and the substantial premium model in accordance with ASC 470, Debt. Based on our assessment, separate accounting for the conversion feature of this note offering is not
required and will be accounted for under the substantial premium model. Under the substantial premium model, the excess above the fair value amounting to $113.0 thousand this note will be recorded as loss on extinguishment of debt in additional
paid-in-capital with a corresponding debit in the unaudited condensed consolidated interim statement of profit and loss for the three months ended March 31, 2025.

F-125

The April 2024 Convertible Notes were once again amended in April 2025 and basis the
amendment the maturity date was revised from April 5, 2025, to April 5, 2026 pursuant to the second amendment. Accordingly, April 2024 Convertible Notes have been reclassified non-current liability
in unaudited condensed consolidated interim balance sheet as at March 31,2025. The amended terms are disclosed as a part of Note on Subsequent Events (Refer Note no. 19 Subsequent Events).

June 2024 Convertible Note

In
June 2024, the Company entered into a convertible note agreement (