Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 201

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 201
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 founder shares.                                                                                                                               |

<div align='center'>115</div>

<div align='center'>MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</div>

Overview

We are a newly incorporated blank check company, incorporated as a Cayman Islands
exempted company for the purpose of effecting a merger, share exchange, asset acquisition,
share purchase, reorganization or similar business combination with one or more businesses
or entities. We have not selected any specific business combination target, and we
have not, nor has anyone on our behalf, engaged in any substantive discussions, directly
or indirectly, with any business combination target with respect to a business combination
with us. We intend to effectuate our initial business combination using cash from
the proceeds of this offering and the sale of the private units, our shares, debt or a combination of cash, shares and debt. We intend to effectuate our initial business combination using cash from the proceeds
of this offering and the sale of the private units, our common equity or any preferred equity that we may create in accordance with
the terms of our charter documents, debt, or a combination of cash, common or preferred
equity and debt.

The issuance of additional ordinary shares or the creation of one or more classes
of preference shares during our initial business combination:

| ● | may significantly dilute the equity interest of investors in                      
 this offering who would not have pre-emption rights in respect of any such issue; |

| ● | may subordinate the rights of holders of ordinary shares if                                                                                
 the rights, preferences, designations and limitations attaching to the preference shares are senior to those afforded our ordinary shares; |

| ● | could cause a change in control if a substantial number of ordinary                                                                  
 shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could 
 result in the resignation or removal of our present officers and directors;                                                          |

| ● | may have the effect of delaying or preventing a change of control                                       
 of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; and |

| ● | may adversely affect prevailing market prices for our public 
 shares.                                                      |

Similarly, if we issue debt securities or otherwise incur significant indebtedness,
it could result in:

| ● | default and foreclosure on our assets if our operating revenues                        
 after our initial business combination are insufficient to repay our debt obligations; |