Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 353

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 353
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 APPLICABILITY AND EFFECT OF ANY UNITED STATES FEDERAL NON-INCOME, STATE AND LOCAL AND NON-U.S. TAX LAWS AS WELL AS UNDER ANY APPLICABLE TAX TREATY.

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Allocation of Purchase Price and Characterization of a Unit

No statutory, administrative
or judicial authority directly addresses the treatment of a public unit or instruments similar to a public unit for United States
federal income tax purposes, and therefore, that treatment is not entirely clear. The acquisition of a public unit should be treated
for United States federal income tax purposes as the acquisition of one public share one-half of one public warrant, subject to
adjustment as described in this prospectus. We intend to treat the acquisition of a public unit in this manner and, by purchasing a public
unit, you must adopt such treatment for United States federal income tax purposes. For United States federal income and other
applicable tax purposes, each holder of a public unit must allocate the purchase price paid by such holder for such public unit between
the one public share and one-half of one public warrant, based on the relative fair market value of each at the time of issuance. Under
United States federal income tax law, each investor must make its own determination of such value based on all the facts and circumstances.
Therefore, we strongly urge each investor to consult its tax advisor regarding the determination of value for these purposes. The price
allocated to each public share or one-half of one public warrant should be the shareholder’s tax basis in such share or warrant.
Any disposition of a public unit should be treated for United States federal income tax purposes as a disposition of the public
shares and public warrants comprising the public unit, and the amount realized on the disposition should be allocated between the public
share and one-half of one public warrant, based on their relative fair market values at the time of disposition (as determined by each
such holder based on all the facts and circumstances).

The foregoing treatment
of the public units, public shares, and public warrants and a holder’s purchase price allocation are not binding on the IRS or
the courts. Because there are no authorities that directly address instruments that are similar to the public units, no assurance can
be given that the IRS or the courts will agree with the characterization described above or the discussion below. If the IRS or a court
were to determine that, contrary to the characterization described above, a public unit is a single instrument for United States
federal income tax purposes, the