The company announced a non-binding letter of intent for a proposed business combination with First Digital Group Ltd., a leading stablecoin and digital asset infrastructure provider, aiming to create a global stablecoin and digital payments leader.

• On December 2, 2025, CSLM Digital Asset Acquisition Corp III, Ltd and First Digital Group Ltd. announced a non-binding letter of intent for a potential business combination to create a global stablecoin and digital payments leader [N1].

The company’s management team has significant experience and local knowledge in frontier growth markets, supported by a global investment platform and advisory resources. Its focus on digital assets and blockchain infrastructure aligns with ongoing digitization trends in financial services. The announced letter of intent with First Digital Group Ltd. positions the company to combine with a leading stablecoin and digital payments provider, potentially creating a global leader in this emerging sector. The company’s ESG mandate and emphasis on scalable, market-leading businesses in underpenetrated markets may enhance long-term value creation potential.

The company is a blank check entity with no operating history or revenues and depends entirely on completing a business combination to generate value. The proposed business combination with First Digital Group Ltd. is subject to numerous conditions and approvals, with no assurance of completion. The company disclosed substantial doubt about its ability to continue as a going concern without completing a business combination or raising additional capital. Competition for attractive targets in frontier markets is intense, and the company may face challenges in executing a transaction that meets its investment criteria. The lack of operating revenues and reliance on interest income from trust funds limit near-term financial visibility.

As a blank check company, CSLM Digital Asset Acquisition Corp III, Ltd does not currently operate a business and thus has no direct competitive moat. Its potential moat would derive from the quality and scalability of the business combination it completes, the management team's deep experience and networks in frontier growth markets, and its focus on ESG investing. The company’s affiliation with experienced sponsors and investment advisers with extensive relationships in emerging markets may provide a competitive advantage in sourcing and executing a suitable business combination. However, the ultimate moat depends on the success and sustainability of the post-combination entity.

• Business Combination Uncertainty: The company’s ability to generate operating revenues and achieve its business objectives depends on successfully completing an initial business combination, which is subject to due diligence, negotiation, approvals, and regulatory conditions with no assurance of consummation.
• Going Concern Risk: The company disclosed substantial doubt about its ability to continue as a going concern one year from the financial statement issuance date without completing a business combination or raising additional capital.
• Competition for Targets: The company faces significant competition from other SPACs, private equity groups, and strategic buyers in identifying and acquiring suitable businesses in frontier growth markets, which may impact deal terms and timing.
• Operational and Regulatory Risks: Post-combination, the company may face challenges related to scaling operations, navigating complex regulatory environments, and transitioning the target to a U.S.-listed public company.

• CSLM Digital Asset Acquisition Corp III, Ltd is a blank check company incorporated in the Cayman Islands on July 26, 2024, focused on effecting a business combination with one or more businesses, primarily in digital assets, Web3 technologies, financial services infrastructure, and blockchain-driven business models, with emphasis on emerging and frontier markets.
• The company completed its IPO on August 28, 2025, issuing 23 million units at $10.00 per unit, raising gross proceeds of $230 million, plus a private placement of 891,250 units raising $8.9 million.
• Proceeds from the IPO and private placement were deposited in a trust account to be used for the initial business combination.
• As of December 31, 2025, the company had not commenced operations and had only engaged in organizational activities, IPO preparation, and searching for a business combination target.
• The company announced a non-binding letter of intent on December 2, 2025, with First Digital Group Ltd., a stablecoin and digital asset infrastructure provider, for a potential business combination.
• The business combination is subject to due diligence, definitive agreement negotiation, approvals, and customary closing conditions, with no assurance of consummation.
• The sponsor is CSLM Acquisition Sponsor II, Ltd, managed by two directors and affiliated with Consilium Investment Management LLC and Meteora, providing advisory and administrative support without formal agreements or compensation.
• The company’s business strategy focuses on identifying and completing a business combination in Frontier Growth Markets with an ESG mandate, leveraging the management team’s local knowledge, global platform, and experience with complex transactions.
• Investment criteria include operations in new economy sectors, established business models with sustainable competitive advantages, strong KPIs and unit economics, scalability, underpenetrated markets, strong management, market leadership, attractive valuation, and ESG focus.
• As of December 31, 2025, the company had $3.1 million in cash and cash equivalents, $233.3 million in treasury securities held in the trust account, current assets of approximately $3.18 million, current liabilities of $209,558, and a current ratio of 15.19.
• The company reported net income of $1.85 million for the year ended December 31, 2025, primarily from interest income on the trust account, offset by operating expenses including formation, administrative, insurance, listing fees, and share-based compensation.
• The company has incurred significant costs related to IPO and acquisition plans and has disclosed substantial doubt about its ability to continue as a going concern without completing a business combination or raising additional capital.
• The company’s Class A ordinary shares and warrants trade on Nasdaq under the symbols KOYN and KOYNW, respectively, with units trading under KOYNU.
• The company has consulting agreements with key executives for advisory and administrative services, and an administrative services agreement with the sponsor for office and support services, both terminating upon completion of the business combination.
• The company’s management team has over 80 years of combined experience investing in Frontier Growth Markets and plans to leverage extensive networks and ESG principles in target evaluation.