Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 324

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 324
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 or other pass-through entity. If you are a partner, member or other beneficial owner of a partnership or
other pass-through entity holding our securities, you are urged to consult your own tax advisor regarding
the tax consequences of the acquisition, ownership and disposition of our securities.

THIS DISCUSSION IS ONLY A SUMMARY OF CERTAIN UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
ASSOCIATED WITH THE ACQUISITION, OWNERSHIP AND DISPOSITION OF OUR SECURITIES. EACH PROSPECTIVE INVESTOR IN OUR SECURITIES IS URGED TO CONSULT ITS OWN TAX ADVISOR
WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO SUCH INVESTOR OF THE ACQUISITION,
OWNERSHIP AND DISPOSITION OF OUR SECURITIES, INCLUDING THE APPLICABILITY AND EFFECT
OF ANY UNITED STATES FEDERAL NON-INCOME, STATE, LOCAL, AND NON-UNITED STATES TAX LAWS.

Allocation of Purchase Price and Characterization of a Unit

No statutory, administrative or judicial authority directly addresses the treatment
of a unit or any instrument similar to a unit for United States federal income tax purposes, and therefore, that treatment is not entirely
clear. The acquisition of a unit should be treated for United States federal income tax purposes as the acquisition of one Class A ordinary share, one right, and one-half of one warrant, and the Company intends to treat the acquisition of a unit in such
manner. By purchasing a unit, you agree to adopt such treatment for United States federal income tax purposes. For United States federal income tax purposes, each holder of a unit must allocate the purchase
price paid by such holder for such unit between the one Class A ordinary share, one right, and the one-half of one warrant based on the relative fair market value of each at the time of issuance.
Under U.S. federal income tax law, each investor must make his or her own determination of such
value based on all the relevant facts and circumstances. Therefore, we strongly urge
each investor to consult his or her tax advisor regarding the determination of value
for these purposes. The price allocated to each Class A ordinary share and the one-third of one warrant should be the shareholder’s initial tax basis in such share and the fraction of a warrant. Any disposition of
a unit should be treated for United States federal income tax purposes as a disposition of the Class A ordinary share, one right and one-half of one warrant comprising the unit, and the amount realized on the disposition