Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 361

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 361
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 entered a SAFE to raise an additional $14.1 million. Proceeds from these financings were received in bitcoin which was added directly to our bitcoin investment treasury. Proceeds from the June SAFEs are restricted from use as operating capital for 18 months following the financing and must be used solely for treasury purposes over that time period. Proceeds from the July SAFE do not contain a similar restriction. Our bitcoin investment treasury is considered a long -terminvestment and we do not have plans or intentions to liquidate that treasury in the near term. We do not believe we will need to sell or engage in other transactions with respect to any of our bitcoin treasury within the next twelve months to meet our working capital requirements, although we may from time to time sell or engage in other transactions with respect to our bitcoin treasury as part of treasury management operations. On December24, 2024, Fold entered into a Securities Purchase Agreement (the “December 2024 Securities Purchase Agreement”) with an institutional investor (the “Investor”), pursuant to which (i) Fold issued to the Investor a Senior Secured Convertible Note in an aggregate principal amount of $20,000,000 (the “Initial Investor Note”), and (ii) Fold may issue to the Investor in connection with the closing of the Business Combination an additional Senior Secured Convertible Note in an aggregate principal amount of $10,000,000 (the “Additional Investor Note” and, together with the Initial Investor Note, the “Investor Notes”), subject to the mutual discretion of Fold and the Investor. The Investor Notes will be convertible into shares of New Fold Common Stock at a conversion price of $11.50 per share. The Investor Notes are secured by Fold’s assets as collateral, including a portion of Fold’s proprietary bitcoin, and will mature three years after the closing of the Business Combination. 227

In connection with the Initial Note, the Investor received Series A Warrants, Series B Warrants, and Series C Warrants exercisable for shares of New Fold Common Stock with an exercise price of $12.50, $0.001, and $11.50 per share, respectively (the “Investor Warrants”). The proceeds from the Initial Note will be used to support Fold’s growth initiatives and accelerate product development. Any proceeds from the Additional Investor Note are expected to provide additional capital flexibility upon the closing of the Business Combination. For the year ended December 31, 2023 and 2022 The following table summarizes our cash flow activities:

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