Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 191

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 191
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 could result in substantial costs and may delay or prevent the Business Combination from being completed.

Securities class action lawsuits and derivative lawsuits are often brought against
public companies that have entered into merger agreements. Even if the lawsuits are without merit, defending against these claims can result in substantial costs and divert management time and resources. An adverse judgment could result in monetary
damages, which could have a negative impact on CSLM’s liquidity and financial condition. Additionally, if a plaintiff is successful in obtaining an injunction prohibiting completion of the Business Combination, then that injunction may delay or
prevent the Business Combination from being completed, or from being completed within the expected timeframe, which may adversely affect CSLM’s and Fusemachines’ respective businesses, financial condition and results of operation.

Risks Related to the Consummation of the Domestication

The Domestication may be a taxable event for U.S. Holders of Public Shares, Public Rights and Public Warrants.

Subject to the limitations and qualifications described in “Material U.S. Federal Income Tax Considerations,” including the
application of the PFIC rules and Section 367(b) of the Code, the Domestication should qualify as a

104

“reorganization” within the meaning of Section 368 of the Code and, as a result, a U.S. Holder (as defined below) should not recognize gain or loss on the exchange of Public
Shares, Public Rights or the Public Warrants for Pubco Common Stock or Pubco Warrants, as applicable, pursuant to the Domestication. If the Domestication qualifies as a “reorganization” within the meaning of Section 368 of the Code, a
U.S. Holder of CSLM securities may still recognize gain (but not loss) or be required to include the “all earnings and profits amount” upon the exchange of its CSLM securities for Pubco securities pursuant to the Domestication under
Section 367(b) of the Code.

Alternatively, if the Domestication does not qualify as a “reorganization” within the meaning
of Section 368 of the Code, then a U.S. Holder that exchanges its Public Shares, Public Rights or Public Warrants for the consideration under the Business Combination 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 and Public Warrants exchanged therefor.

In addition, U.S. Holders of Public