Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 293

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 293
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 with those set out below or that any such positions would not be sustained by a court. EACH HOLDER OF FOLD COMMON STOCK SHOULD CONSULT ITS TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO SUCH HOLDER OF THE MERGER, INCLUDING THE APPLICABILITY AND EFFECTS OF U.S. FEDERAL NON -INCOME , STATE AND LOCAL AND NON -U .S. TAX LAWS. General Tax Treatment of the Merger Fold and Emerald intend, and the remainder of this discussion assumes, qualification of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code. Fold and Emerald have not sought and will not seek a ruling from the IRS with respect to the tax treatment of the Merger, and as a result, the obligations of the parties to complete the Merger are not conditioned on the receipt of opinions from counsel to the effect that the Merger will qualify as a reorganization for U.S. federal income tax purposes. Consequently, no assurance can be given that the IRS will not challenge the treatment of the Merger described below or that a court would not sustain such a challenge. If the IRS were to successfully challenge the tax treatment of the Merger, Fold U.S. Holders could be required to fully recognize gain with respect to such Fold Common Stock as a result of the Merger. Tax Consequences of the Merger to Fold U.S. Holders For purposes of this discussion, a “Fold U.S. Holder” is a beneficial owner of Fold Common Stock that is, for U.S. federal income tax purposes: •an individual citizen or resident of the United States; •a corporation (or any other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; •an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or •a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more “United States persons” (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes. A Fold U.S. Holder of Fold Common Stock that receives New Fold Common Stock in exchange for shares of Fold Common Stock in the Merger will not recognize gain or loss for