Company: KOYNU
Filing Date: 2025-05-15
Form Type: DRS
Source: 0001829126-25-003675
Chunk: 100

Company: CSLM Digital Asset Acquisition Corp III, Ltd
Filing Date: 2025-05-15
Form: DRS
Chunk 100
---
 upon any redemption or liquidation of the Company.

We intend to initially hold
the funds in the trust account as cash, including in demand deposit accounts at a bank, or in U.S. government treasury obligations with
a maturity of 185 days or less or in money market funds investing solely in U.S. government treasury obligations and meeting certain conditions
under Rule 2a-7 under the Investment Company Act. U.S. government treasury obligations are considered “securities” for
purposes of the Investment 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