Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 326

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 326
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. Holder the amount of any distribution of cash or other property
(other than certain distributions of our shares or rights to acquire our shares) paid on our Class A ordinary shares to the extent the
distribution is paid out of our current or accumulated earnings and profits (as determined under United States federal income tax principles).
Distributions in excess of such earnings and profits generally will be applied against and reduce the U.S. Holder’s basis in its
Class A ordinary shares (but not below zero) and, to the extent in excess of such basis, will be treated as gain from the sale or exchange
of such Class A ordinary shares (the treatment of which is described under “— Gain or Loss on Sale, Taxable Exchange or Other
Taxable Disposition of Class A Ordinary Shares, Warrants and Rights” below).

Dividends paid by us will
be taxable to a corporate U.S. Holder at regular rates and will not be eligible for the dividends-received deduction generally allowed
to domestic corporations in respect of dividends received from other domestic corporations. With respect to non-corporate U.S. Holders,
dividends generally will be taxed at the preferential applicable long-term capital gains rate (see “— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares, Warrants and Rights” below) only if our Class A ordinary
shares are readily tradable on an established securities market in the United States, we are not a PFIC at the time the dividend was paid
or in the previous year, and certain other requirements are met. It is unclear, however, whether certain redemption rights described in
this prospectus may suspend the running of the applicable holding period for this purpose. U.S. Holders should consult their tax advisors
regarding the availability of such preferential rate for any dividends paid with respect to our Class A ordinary shares.

Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares, Warrants, and Rights

Subject to the PFIC rules discussed below, a U.S. Holder generally will recognize capital gain or loss on the sale or other taxable
disposition of our Class A ordinary shares or warrants (including a redemption of our Class A ordinary shares (as described below) or warrants that is treated as a taxable disposition,
including pursuant to our dissolution and liquidation if we do not consummate an initial
business combination within the required time period). Any such capital gain or loss
generally will be long