Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 54

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 54
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 of the Code, a U.S. Holder of CSLM securities may, in certain circumstances, still recognize gain (but not loss) upon the exchange of its CSLM securities for Pubco securities pursuant to the Domestication under the PFIC rules of the Code equal to the excess, if any, of the fair market value of Pubco securities received in the Domestication and the U.S. Holder’s adjusted tax basis in the corresponding CSLM securities surrendered in exchange therefor. The tax on any such gain so recognized would be imposed at the rate 18

applicable to ordinary income and an interest charge would apply. For a more complete discussion of the potential application of the PFIC rules to U.S. Holders as a result of the Domestication, see the discussion in the section titled “ Material U.S. Federal Income Tax Considerations — U.S. Holders — U.S. Federal Income Tax Consequences of the Domestication to U.S. Holders of CSLM Securities — Passive Foreign Investment Company Status.” If the Domestication does not qualify as a reorganization, then a U.S. Holder that exchanges its CSLM securities for Pubco securities will recognize gain or loss equal to the difference between (i) the sum of the fair market value of the Pubco Common Stock and Pubco Warrants received and (ii) the U.S. Holder’s adjusted tax basis in the Public Shares, Public Rights and Public Warrants exchanged. Additionally, the Domestication may cause Non-U.S. Holders (as defined in “ Material U.S. Federal Income Tax Considerations”) to become subject to U.S. federal income withholding taxes on any dividends paid in respect of such Non-U.S. Holder’s shares of Public Shares after the Domestication. For a more detailed discussion of certain U.S. federal income tax consequences of the Domestication, see “ Material U.S. Federal Income Tax Considerations — U.S. Holders — U.S. Federal Income Tax Consequences of the Domestication to U.S. Holders of CSLM Securities” in this proxy statement/consent solicitation statement/prospectus. Holders should consult their own tax advisors to determine the tax consequences to them (including the application and effect of any state, local or other income and other tax laws) of the Domestication.

| Q. | Do I have Redemption Rights? |

| A. | If you are a holder of Public Shares, you have the right to request that we redeem all or a                                                                                                                                                         
 portion of your Public Shares for cash