Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 107

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 107
---
 a significant number of securities for trading in the public market may have an adverse effect on the market price of our public shares. In addition, the existence of the registration rights may make our initial business combination more costly or difficult to conclude. This is because the shareholders of the target business may increase the equity stake they seek in the combined entity or ask for more cash consideration to offset the negative impact on the market price of our public shares that is expected when the securities owned by our initial shareholders or their respective permitted transferees, are registered.

The requirement that the target business or businesses that we acquire must collectively have a fair market value equal to at least 80% of the balance of the funds in the trust account (less any taxes payable on interest earned) at the time of the execution of a definitive agreement for our initial business combination may limit the type and number of companies with which we may complete such a business combination.

Pursuant to Nasdaq listing rules, the target business
or businesses that we acquire must collectively have a fair market value equal to at least 80% of the balance of the funds in the trust
account (excluding any deferred underwriting discounts and commissions and taxes payable on the income earned on the trust account and
less any interest earned thereon that is released to us to pay our tax obligations (excluding U.S. federal excise tax) at the time of
the execution of a definitive agreement for our initial business combination. This restriction may limit the type and number of companies
with which we may complete an initial business combination. Although we intend to consummate our business combination with a target with
an aggregate enterprise value in excess of $500 million, there is no guarantee that we will do so. If we are unable to locate a target
business or businesses that satisfy this fair market value test, we may be forced to liquidate, and you will only be entitled to receive
your pro rata portion of the funds in the trust account. If Nasdaq delists our securities from trading on its exchange after this offering,
we would not be required to satisfy the fair market value requirement described above and could complete an initial business combination
with a target business having a fair market value substantially below 80% of the balance in the trust account. If the net proceeds of
this offering and the sale of the private placement warrants not being held in the trust account are insufficient to allow us to operate
for at least the completion window, we may be unable to complete our initial business combination, in which case our