Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 295

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 295
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purposes.

If the Domestication Does Not Qualify as a Reorganization

If the Domestication fails to qualify as a Reorganization, and subject to the PFIC rules discussed below under the heading “—
Passive Foreign Investment Company Status,” a U.S. Holder that exchanges its CSLM securities for Pubco securities in the Domestication will recognize gain or loss equal to the difference between (i) fair market value of the Pubco
securities received and (ii) the U.S. Holder’s adjusted tax basis in the CSLM securities exchanged therefor. A U.S. Holder’s aggregate tax basis in the Pubco securities received will be the fair market value of the Pubco securities on
the date of the Domestication. The U.S. Holder’s holding period for the Pubco securities received pursuant to the Domestication will begin on the day after the date of the Domestication.

Such gain or loss will be a capital gain or loss and will be a long-term capital gain or loss if the U.S. Holder’s holding period for the
CSLM securities exceeds one year at the time of the Domestication. Long-term capital gains recognized by non-corporate U.S. Holders, including individuals, currently are subject to reduced rates of U.S.
federal income taxation. The deductibility of capital losses is subject to limitations under the Code. Any such gain or loss recognized by a U.S. Holder will generally be treated as U.S. source gain or loss.

U.S. Holders should consult their own tax advisors as to the particular consequences to them of the exchange of CSLM securities for Pubco
securities pursuant to the Domestication, the qualification of the Domestication as a Reorganization, and the application of Section 367(b) to the Domestication.

Passive Foreign Investment Company Status

Even if the Domestication qualifies as a Reorganization, the Domestication may be a taxable event to U.S. Holders of CSLM securities under the
PFICprovisions of the Code, to the extent that Section 1291(f) of the Code applies. Because CSLM is a blank check company with no current active operating business, based upon the composition of its income and assets, and upon a
tentative review of its financial statements, CSLM believes that it likely was a PFIC for its most recent taxable year ended on December 31, 2023, and will likely be considered a PFIC for its current taxable year which ends as a result of the
Domestic