Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 284

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 284
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 before such redemptions. You are urged to consult with your tax advisor as to the tax considerations of a redemption. If none of the foregoing tests are satisfied, then the redemption proceeds will be treated as a corporate distribution and the tax effects will be as described below under “ U.S. Holder — Redemption of Emerald Public Shares Treated as Distributions” or “ Non -U .S. Holder — Redemption of Emerald Public Shares Treated as Distributions,” as applicable. After the application of those rules, any remaining tax basis you have in the redeemed Emerald Public Shares will be added to your adjusted tax basis in your remaining Emerald Public Shares, or, if you have none, to your adjusted tax basis in Public Warrants held by you or possibly in other shares constructively owned by you. If you hold different blocks of Emerald Public Shares (generally, Emerald Public Shares purchased or acquired on different dates or at different prices), you are urged to consult your tax advisors to determine the adjusted tax basis and holding period of the Emerald Public Shares redeemed. All holders of Emerald Public Shares are urged to consult their tax advisors with respect to the tax considerations of a redemption of Emerald Public Shares in their particular circumstances, including tax return reporting requirements, the applicability and effect of the alternative minimum tax, any federal tax laws other than those pertaining to income tax (including estate and gift tax laws), and any state, local, foreign or other tax laws. U.S. Holders U.S. Federal Income Tax Considerations of Ownership and Disposition of New Fold Common Stock; Redemption of Emerald Public Shares The following discussion is a summary of certain material U.S. federal income tax considerations of (1) the ownership and disposition of New Fold Common Stock to U.S. Holders who hold shares of New Fold Common Stock following the Merger; and (2) the exercise by U.S. Holders of Emerald Public Shares of their redemption rights in connection with the Merger. Distributions on New Fold Common Stock; Redemption of Emerald Public Shares Treated as Distributions The gross amount of any distribution that is made out of New Fold (or in the case of a redemption of Emerald Public Shares treated as a distribution, Emerald’s) current or accumulated earnings and profits (as determined for U.S. federal income tax purposes) will be taxable to a U.S. Holder as ordinary dividend income on the date such distribution is actually or constructively received by such U.S. Holder. Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will