Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 301

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 301
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 If the redemption qualifies as a sale or exchange of the Pubco Common Stock, the U.S. Holder will be treated
as recognizing capital gain or loss equal to the difference between the amount realized on the redemption and such U.S. Holder’s adjusted tax basis in the Pubco Common Stock surrendered in such redemption transaction. Any such capital gain or
loss generally will be long-term capital gain or loss if the U.S. Holder’s holding period for the Pubco Common Stock redeemed exceeds one year. Long-term capital gains recognized by non-corporate U.S.
Holders will be eligible to be taxed at reduced rates. However, it is unclear whether the redemption rights with respect to the Pubco Common Stock may prevent a U.S. Holder from satisfying the applicable holding period requirement. The deductibility
of capital losses is subject to limitations.

If the redemption does not qualify as a sale or exchange of Pubco Common Stock, the U.S.
Holder will be treated as receiving a corporate distribution. Such distributions generally will constitute dividends for U.S. federal income tax purposes to the extent paid from CSLM’s current or accumulated earnings and profits, as determined
under U.S. federal income tax principles. Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. Holder’s adjusted tax
basis in the Pubco Common Stock. Any remaining excess will be treated as gain realized on the sale or other disposition of the Pubco Common Stock. Dividends paid to a U.S. Holder that is a taxable corporation generally will qualify for the dividends
received deduction if the requisite holding period is satisfied. With certain exceptions (including, but not limited to, dividends treated as investment income for purposes of investment interest deduction limitations) and provided certain holding
period requirements are met, dividends paid to a non-corporate U.S. Holder generally will constitute “qualified dividends” that will be subject to tax at the preferential tax rate accorded to
long-term capital gains. However, it is unclear whether the redemption rights with respect to the Pubco Common Stock may prevent a U.S. Holder from satisfying the applicable holding period requirements with respect to the dividends received
deduction or the preferential tax rate on qualified dividend income, as the case may be.

Whether a redemption qualifies for sale or
exchange treatment will depend largely on the total number of shares of Pubco Common Stock treated as held by the U.S. Holder (including any Pubco Common