Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 360

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 360
---
us
entitled “Description of Securities — Warrants” or if we purchase public warrants in an open market transaction,
such redemption or purchase generally will be treated as a taxable disposition to the U.S. Holder, taxed as described above under “—
Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Public Shares and Public Warrants.” In the case of
a cashless exercise, the exercise may be treated either as if we redeemed such public warrant for public shares or as an exercise of
the public warrant. If the cashless exercise of a public warrant for public shares is treated as a redemption, then such redemption generally
should be treated as a tax-deferred recapitalization for U.S. federal income tax purposes, in which case a U.S. Holder should
not recognize any gain or loss on the deemed redemption and accordingly a U.S. Holder’s aggregate tax basis in the public
shares received in the redemption should equal the U.S. Holder’s aggregate tax basis in the public warrants so redeemed and
the holding period for the public shares should include the U.S. Holder’s holding period for the redeemed public warrants.
However, if there is some uncertainty regarding this tax treatment and it is possible such a redemption could be treated as a taxable
exchange in which gain or loss would be recognized. If the cashless exercise of the public warrant is treated as such, then the tax treatment
would instead be treated as described above in the second and third paragraphs under “—U.S. Holders — Exercise, Lapse or Redemption of a Warrant.” In the case of an exercise of a public warrant for cash, the tax treatment generally should
be as described above in the first paragraph under “—U.S. Holders — Exercise, Lapse or Redemption of a Warrant.”

Due to the lack of clarity under current law regarding the treatment of an exercise of a public warrant after our giving notice of an intention to redeem the public warrant, there can be no assurance as to which, if any, of the alternative tax consequences described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax advisors regarding the tax consequences of the exercise of a public warrant occurring after our giving notice of an intention to redeem the public warrant as described above.

Possible Constructive Distributions

The terms of each public warrant provide for an adjustment to the number of public shares for which the public warrant may be exercised or to the exercise price of the public warrant