Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 107

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 107
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, might otherwise benefit us and our shareholders. Furthermore, a shareholder’s investment may be adversely
affected to the extent we pay the costs of settlement and damage awards against our officers and directors pursuant to these indemnification
provisions.

If we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted, which may make it difficult for us to complete our initial business combination.

As described in the risk factor
above entitled “Changes in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our
business, including our ability to negotiate and complete our initial business combination, and results of operations.”, the SEC’s
adopting release with respect to the SPAC Rules provided guidance describing the extent to which SPACs could become subject to regulation
under the Investment Company Act and the regulations thereunder. Whether a SPAC is an investment company will be a question of facts
and circumstances. If our facts and circumstances change over time, we will update our disclosure to reflect how those changes impact
the risk that we may be considered to be operating as an unregistered investment company. We can give no assurance that a claim will
not be made that we have been operating as an unregistered investment company.

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If we are deemed to be an investment
company under the Investment Company Act, we may have to change our operations, wind down our operations, or register as an investment
company under the Investment Company Act. Our activities may be restricted, including:

| ● | restrictions on the nature of our investments; and |

| ● | restrictions on the issuance of securities, each of which may make it difficult for us to complete 
 our initial business combination.                                                                  |

In addition, we may have imposed
upon us burdensome requirements, including:

| ● | registration as an investment company; |

| ● | adoption of a specific form of corporate structure; and |

| ● | reporting, record keeping, voting, proxy and disclosure requirements and other rules and regulations. |

In order not to be regulated
as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged
primarily in a business other than investing, reinvesting or trading in securities and that our activities do not include investing,
reinvesting, owning, holding or trading “investment securities” constituting more than 40% of our total assets (exclusive