Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 332

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 332
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entitled “Description of Securities-Warrants — Public Shareholders’ Warrants” or if we purchase warrants in an
open market transaction, such redemption or purchase generally will be treated as a taxable disposition to the U.S. Holder, taxed as
described above under “— Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares,
Warrants and Rights.”

Possible Constructive Distributions

The terms of each warrant provide for an adjustment to the number of Class A ordinary shares for which the warrant may be exercised or to the exercise price
of the warrant in certain events, as discussed in the section of this prospectus entitled
“Description of Securities — Warrants — Public Shareholders’ Warrants.” An adjustment which has the effect of preventing dilution generally is
not taxable. The U.S. Holders of the warrants would, however, be treated as receiving a constructive distribution
from us if, for example, the adjustment increases such U.S. Holders’ proportionate interest in our assets or earnings and profits (e.g., through an increase
in the number of Class A ordinary shares that would be obtained upon exercise or through a decrease in the
exercise price of the warrants), which adjustment may be made as a result of a distribution
of cash or other property to the holders of our Class A ordinary shares. Such constructive distribution to a U.S. Holder of warrants would be treated as if such U.S. Holder had received a cash distribution from us generally equal to the fair market
value of such increased interest (taxed as described above under “— Taxation of Distributions”).

Passive Foreign Investment Company Rules

A foreign (i.e., non-U.S.) corporation will be classified as a PFIC for United States federal income tax purposes if either (i) at least 75% of its gross income in a taxable year, including its pro rata share of the gross income of any corporation in which it is considered to own
at least 25% of the shares by value, is passive income or (ii) at least 50% of its assets in a taxable year (ordinarily determined based on fair
market value and averaged quarterly over the year), including its pro rata share of the assets of any corporation in which it is considered to own at least
25% of the shares by value, are held for the production of, or produce, passive income.
Passive income generally includes, among other things, dividends, interest, rents
and