Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 113

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 113
---
 relating to our initial business combination related to a minimum cash requirement, if any, or otherwise
result in the shareholders of the combined company (including any of our shareholders who do not exercise their redemption rights in
connection with the initial business combination) to economically bear the impact of the Excise Tax. Consequently, the Excise Tax may
make a transaction with us less appealing to potential business combination targets. Finally, subject to certain exceptions, the Excise
Tax should not apply in the event of our complete liquidation. However, in the event of an Excise Tax imposed upon a complete liquidation,
we may use the interest earned on the proceeds placed in the trust account to pay such Excise Tax and the amount received by shareholders
may decrease.

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

If we are a PFIC for any
taxable year (or portion thereof) that is included in the holding period of a U.S. Holder (as defined in the section of this prospectus
captioned “Taxation — Material United States Federal Income Tax Considerations — U.S. Holders”) of our
public shares, or public warrants, the U.S. Holder may be subject to adverse U.S. federal income tax consequences and may be subject
to additional reporting requirements. Our PFIC status for our current and subsequent taxable years may depend on the status of an acquired
company pursuant to a business combination and whether we qualify for the PFIC start-up exception (see the section of this prospectus
captioned “Taxation — Material United States Federal Income Tax Considerations — U.S. Holders — Passive Foreign Investment Company Rules”). Depending on the particular circumstances the application of the start-up exception may be subject
to uncertainty, and there cannot be any assurance that we will qualify for the start-up exception. Accordingly, there can be no assurances
with respect to our status as a PFIC for our current taxable year or any subsequent taxable year. Our actual PFIC status for any taxable
year, however, will not be determinable until after the end of such taxable year. In addition, our U.S. counsel expresses no opinion
with respect to our PFIC status for any taxable year.

<div align='center'>68</div>

Moreover, if we determine
we are a PFIC for any taxable year, upon written request, we will endeavor to provide to a U.S. Holder such information as