Company: KOYNU
Filing Date: 2025-07-31
Form Type: S-1/A
Source: 0001829126-25-005627
Chunk: 110

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-07-31
Form: S-1/A
Chunk 110
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 Company Act, while cash is not. As noted above, one of the factors the SEC identified as relevant to the
determination of whether a SPAC which holds securities could potentially be deemed an “investment company” under the Investment
Company Act is the SPAC’s duration. To mitigate the risk of us being deemed to be an unregistered investment company (including
under the subjective test of Section 3(a)(1)(A) of the Investment Company Act) and thus subject to regulation under the Investment
Company Act, we may, at any time, instruct Continental Stock Transfer & Trust Company, the trustee with respect to the trust account,
to liquidate the U.S. government treasury obligations or money market funds held in the trust account and thereafter to hold all funds
in the trust account in cash until the earlier of consummation of our initial business combination or liquidation of the Company. Following
such liquidation, the rate of interest we receive on the funds held in the trust account may be materially decreased. However, interest
previously earned on the funds held in the trust account still may be released to us for permitted withdrawals and certain other expenses
as permitted. As a result, any decision to liquidate the securities held in the trust account and thereafter to hold all funds in the
trust account in cash would reduce the dollar amount our public shareholders would receive upon any redemption or liquidation of the
Company.

Our shareholders may be held liable for claims by third parties against us to the extent of distributions received by them.

If we are forced to enter
into an insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment if it was proved that
immediately following the date on which the distribution was made, we were unable to pay our debts as they fall due in the ordinary course
of business. As a result, a liquidator could seek to recover some or all amounts received by our shareholders. Furthermore, our directors
may be viewed as having breached their fiduciary duties to us or our creditors and/or may have acted in bad faith, thereby exposing themselves
and our Company to claims, by paying public shareholders from the trust account prior to addressing the claims of creditors. We cannot
assure you that claims will not be brought against us for these reasons. We and our directors and officers who knowingly and willfully
authorized or permitted any distribution to be paid out of our share premium account while we were unable to pay our debts as they fall
due in the ordinary course of business