Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 102

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 102
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 tax payable is generally 1% of the fair market value of the shares of stock repurchased at the time of the repurchase, subject to certain exceptions and limitations. On April 9, 2024, the U.S. Department of the Treasury (the “U.S. Treasury”) issued proposed regulations relating to payment of excise tax, which may generally be relied upon by taxpayers until the regulations are finalized.

As an entity incorporated as a Cayman Islands exempted company, the 1% excise tax is not expected to apply to redemptions of our ordinary shares, absent any regulations and other additional guidance that may be issued in the future with retroactive effect.

However, in connection with
an initial business combination involving a company organized under the laws of the United States, it is possible that we domesticate
and continue as a U.S. corporation, in which case it is possible that we will be subject to the excise tax with respect to any subsequent
redemptions, including redemptions in connection with the initial business combination, that are treated as repurchases for this purpose
(other than, pursuant to the proposed regulations from the U.S. Treasury, redemptions in complete liquidation of the Company). In all
cases, the extent of the excise tax that may be incurred will depend on a number of factors, including the fair market value of our stock
redeemed, the structure of the initial business combination, the extent to which such redemptions could be treated as dividends and not
repurchases, and the content of any final regulations and other additional guidance from the U.S. Treasury that may be issued and applicable
to the redemptions. Issuances of stock by a repurchasing corporation in a year in which such corporation repurchases stock may reduce
the amount of excise tax imposed with respect to such repurchase. The excise tax is imposed on the repurchasing corporation itself, not
the shareholders from which stock is repurchased. The imposition of the excise tax as a result of redemptions in connection with the initial
business combination could, however, reduce the amount of cash available to pay redemptions or reduce the cash contribution to the target
business in connection with an initial business combination, which could cause the other shareholders of the combined company to economically
bear the impact of such excise tax.

We may be a passive foreign investment company, or “PFIC,” which could result in adverse United States federal income tax consequences to U.S.