Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 156

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 156
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 conflicts, recessions, inflation, interest rate changes or international currency fluctuations, may negatively affect the market price of our common stock. In the past, many companies that have experienced
volatility in the market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our
management’s attention from other business concerns, which could seriously harm our business.

The public stockholders will experience immediate dilution as a consequence of the issuance of Pubco Common Stock as consideration in the Business Combination and due to future issuances pursuant to the Fusemachines Equity Incentive Plan. Having a minority share position may reduce the influence that Fusemachines’ current stockholders have on the management of Pubco.

It is anticipated that,
following the Business Combination, an aggregate of 25,520,127 shares of Pubco Common Stock will be outstanding, assuming maximum redemptions and based on Fusemachines’ balance of capital stock as of June 30, 2025, comprised of:
(i) 16,347,875 shares of Pubco Common Stock issued to Fusemachines Securityholders in the Merger excluding the shares of Pubco Common Stock reserved for issuance upon the exercise of Converted Stock Options, Converted Warrants and Converted
SARs, which will not be outstanding immediately following the Closing), constituting approximately 64% of the outstanding Pubco Common Stock; and (ii) 6,568,752 shares of Pubco Common Stock issued to the Sponsor. These percentages assume that
no CSLM Warrants will be exercised and there are no other issuances of equity securities of Pubco prior to or in connection with the Closing, including any equity awards that may be issued under the Fusemachines Equity Incentive Plan following the
Business Combination. If the actual facts are different from these assumptions, the percentage ownership retained by CSLM’s existing shareholders in the combined company will be different.

In addition, Fusemachines employees and consultants hold, and after the Business Combination, are expected to be granted, equity awards under
equity incentive plans. You will experience additional dilution when those equity awards and purchase rights become vested and settled or exercisable, as applicable, for shares of Pubco Common Stock.

The issuance of additional common stock will significantly dilute the equity interests of existing holders of CSLM securities and may
adversely affect prevailing market prices for our Public Shares or Public Warrants.