Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 203

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 203
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 its dissolution. However, because Emerald is a blank check company, rather than an operating company, and Emerald’s operations are limited to searching for prospective target businesses to acquire, the only likely claims to arise would be from Emerald’s vendors (such as lawyers, investment bankers, etc.) or prospective target businesses. If Emerald’s plan of distribution complies with Section 281(b) of the DGCL, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s pro ratashare of the claim or the amount distributed to the stockholder, and any liability of the stockholder would likely be barred after the third anniversary of the dissolution. Emerald cannot assure you that it will properly assess all claims that may be potentially brought against Emerald. As such, Emerald’s stockholders could potentially be liable for any claims to the extent of distributions received by them (but no more) and any liability of Emerald’s stockholders may extend beyond the third anniversary of such date. Furthermore, if the pro rataportion of the Trust Account distributed to the Public Stockholders upon the redemption of the Public Shares in the event Emerald does not complete an initial business combination by the Extension Deadline is not considered a liquidating distribution under Delaware law and such redemption distribution is deemed to be unlawful (potentially due to the imposition of legal proceedings that a party may bring or due to other circumstances that are currently unknown), then pursuant to Section 174 of the DGCL, the statute of limitations for claims of creditors could then be six years after the unlawful redemption distribution, instead of three years, as in the case of a liquidating distribution. 109 There is no guarantee that a stockholder’s decision whether to redeem their shares of Emerald Class A Common Stock for a pro rata portion of the Trust Account will put the stockholder in a better future economic position. Emerald can give no assurance as to the price at which a stockholder may be able to sell its Public Shares in the future following the completion of the Business Combination or any alternative business combination. Certain events following the consummation of any initial business combination, including the Business Combination, may cause an increase in Emerald’s share price, and may result in a lower value realized now than a stockholder of Emerald might realize in the future had the stockholder redeemed their shares. Similarly, if a stockholder does not redeem their shares, the stockholder will bear the risk of ownership of the Public Shares after the consummation of any initial business combination, including the Business Combination, and there