Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 355

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 355
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to holding period). It is unclear, however, whether certain redemption rights described in this prospectus may suspend the running of
the applicable holding period for this purpose. U.S. Holders should consult their tax advisors regarding the availability of such
lower rate for any dividends paid with respect to our public shares.

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Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Public Shares and Public Warrants

Subject to the PFIC rules
discussed below, a U.S. Holder generally will recognize capital gain or loss on the sale or other taxable disposition of our public
shares or public warrants (including on our dissolution and liquidation if we do not consummate an initial business combination within
the required time period). Any such capital gain or loss generally will be long-term capital gain or loss if the U.S. Holder’s
holding period for such public shares or public warrants exceeds one year. It is unclear, however, whether certain redemption rights
described in this prospectus may suspend the running of the applicable holding period for this purpose. If the running of the holding
period is suspended, then non-corporate U.S. Holders may not be able to satisfy the one-year holding period requirement for long-term
capital gain treatment, in which case any gain on a sale or taxable disposition of our public shares or public warrants would be subject
to short-term capital gain treatment and would be taxed at ordinary income rates.

The amount of gain or loss
recognized on a sale or other taxable disposition generally will be equal to the difference between (i) the amount of cash and the
fair market value of any property received in such disposition (or, if the public shares or public warrants are held as part of public
units at the time of the disposition, the portion of the amount realized on such disposition that is allocated to the public shares or
public warrants based upon the then fair market values of the public shares or public warrants included in the public units) and (ii) the
U.S. Holder’s adjusted tax basis in its public shares or public warrants so disposed of. A U.S. Holder’s adjusted
tax basis in its public shares or public warrants generally will equal the U.S. Holder’s acquisition cost (that is, the portion
of the purchase price of a public unit allocated to an public shares or public warrants, as described above under “— Allocation of Purchase Price and Characterization of a Unit”) reduced, in the case of an public