The company announced a non-binding letter of intent with First Digital Group Ltd. for a proposed business combination aimed at creating 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 proposed business combination to create a global stablecoin and digital payments leader [N1].

The company’s focus on digital assets, Web3, and blockchain infrastructure in emerging and frontier markets aligns with sectors experiencing significant innovation and growth potential. Its management team’s extensive experience and network in these markets, combined with ESG investment principles, may enable it to identify and execute a business combination with a company possessing scalable operations, market leadership, and attractive valuation. The announced letter of intent with First Digital Group Ltd. suggests progress toward a business combination that could position the company as a global stablecoin and digital payments leader.

The company currently has no operating revenues and depends entirely on completing a business combination to establish an operating business. The proposed business combination is subject to numerous uncertainties, including successful negotiation, due diligence, regulatory approvals, and shareholder consent. Failure to complete a business combination within the prescribed timeframe could result in liquidation. Additionally, competition from other SPACs and investment entities may limit the attractiveness of acquisition opportunities. The company’s financial statements indicate substantial doubt about its ability to continue as a going concern without completing a business combination or raising additional capital.

As a blank check company, CSLM Digital Asset Acquisition Corp III, Ltd does not currently have operating assets or competitive advantages typical of operating companies. Its potential moat lies in the experience and network of its management team and sponsors, particularly their expertise in Frontier Growth Markets and ESG investing, which may provide differentiated access to quality acquisition targets and facilitate successful business combinations. The company’s affiliation with established investment management firms and advisors with sector knowledge may also contribute to its ability to identify and execute attractive transactions. However, until a business combination is completed, the company’s competitive positioning remains undeveloped.

• Business Combination Uncertainty: No definitive agreement has been reached for the proposed business combination, and there is no assurance that negotiations will result in a transaction or that it will be consummated on the contemplated terms or timeframe.
• Limited Operating History: The company has not commenced operations and has no operating revenues, relying solely on the completion of a business combination to generate revenues and profits.
• Going Concern Risk: The company’s financial disclosures indicate substantial doubt about its ability to continue as a going concern 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 business combination targets.
• Regulatory and Approval Risks: Completion of the business combination is subject to regulatory approvals, shareholder votes or tender offers, and other customary closing conditions, which may delay or prevent consummation.

• CSLM Digital Asset Acquisition Corp III, Ltd is a blank check company incorporated in the Cayman Islands on July 26, 2024, formed to effect a business combination with one or more businesses, focusing on digital assets, Web3 technologies, financial services infrastructure, and blockchain-driven business models, especially in emerging and frontier markets.
• The company completed its IPO on August 28, 2025, issuing 23 million units at $10 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 placed in a trust account for the benefit of public shareholders.
• 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 on December 2, 2025, a non-binding letter of intent with First Digital Group Ltd., a stablecoin and digital asset infrastructure provider, for a potential business combination.
• No definitive agreement has been reached yet; the transaction is subject to due diligence, negotiation, approvals, and regulatory conditions.
• The company’s sponsor is CSLM Acquisition Sponsor II, Ltd, managed by two directors and affiliated with Consilium Investment Management LLC and Meteora, which provide advisory and administrative support without formal agreements or compensation.
• The company’s business strategy focuses on identifying a business combination in Frontier Growth Markets with an ESG mandate, leveraging the sponsor’s network and expertise.
• Investment criteria include operations in new economy sectors, established business models, scalability, market leadership, attractive valuation, and ESG focus.
• As of December 31, 2025, the company had $3,183,288 in current assets, including cash and cash equivalents of $3,108,288, and current liabilities of $209,558, resulting in a strong current ratio of 15.19.
• The trust account held $233,253,391 in U.S. Treasury Bills as of December 31, 2025, which is not included in current assets but is a significant liquidity source.
• For the year ended December 31, 2025, the company reported net income of $1,847,947, primarily from interest income on the trust account and money market funds, offset by operating expenses including formation, administrative, insurance, listing fees, and share-based compensation.
• The company has incurred no operating revenues and will not generate revenues until after the completion of its initial business combination.
• The company has a 24-month window from the IPO closing to complete its initial business combination, with possible extensions subject to shareholder approval.
• The company’s management team has extensive experience in Frontier Growth Markets and ESG investing, aiming to leverage these for successful target identification and execution.
• The company’s sponsor and affiliates provide a broad platform of resources, including investment expertise and a network of potential acquisition candidates.
• The company’s financial statements and disclosures indicate substantial doubt about its ability to continue as a going concern without completing a business combination or raising additional capital.
• The company pays a monthly administrative fee to its sponsor and has consulting agreements with key individuals for advisory services, which terminate upon completion of the business combination.