Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 398

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 398
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of which Emerald’s Chairman’s son is also Chairman of the Board and a controlling stockholder). Emerald paid CCM a fee in an amount equal to 0.3% of the aggregate proceeds of the IPO (excluding the proceeds of the exercise of the overallotment option) net of underwriter’s expenses, upon the closing of the IPO. Emerald also engaged CCM to act as an advisor in connection with the Business Combination for which it will earn an advisory fee of 0.525% of the proceeds of the initial public offering (excluding the proceeds of the exercise of the overallotment option) payable at closing of the Business Combination. CCM is also entitled to an advisory fee equal to 0.825% of the aggregate proceeds of the exercise of the overallotment option, payable at the closing of the Business Combination. The IPO underwriter agreed to reimburse Emerald for the fee to CCM out of the underwriting commissions. Accordingly, a reimbursement receivable and deferred advisory fee of $1,155,000 had been reflected in the accompanying balance sheets. On October 18, 2023, Emerald entered into an agreement with the IPO underwriter in which the underwriter waived any entitlement it may have to the deferred underwriting discount in respect of any business combination. As a result, Emerald reversed the reimbursement receivable and recognized $1,155,000 of advisory fee expenses in its statements of operations. Affiliates of CCM have and manage investment vehicles with a passive investment in the Sponsor. Trust Account Indemnification Emerald ESG Sponsor, LLC has agreed that, if the Trust Account is liquidated without the consummation of a business combination, it will indemnify Emerald to the extent any claims by a third party for services rendered or products sold to Emerald, or any claims by a prospective target business with which Emerald has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below $10.10 per Public Share, except for any claims by any third party who executed a waiver of any and all rights to seek access to the Trust Account, regardless of whether such waiver is enforceable, and except for claims arising from Emerald’s obligation to indemnify the underwriter of the IPO pursuant to the IPO underwriting agreement. Emerald has not independently verified whether Emerald ESG Sponsor, LLC has sufficient funds to satisfy its indemnity obligations, Emerald has not asked Emerald ESG Sponsor, LLC to reserve for such obligations and Emerald believes that its only assets are Emerald’s securities. Therefore, Emerald