Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 780

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 780
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 holders as a result of the Class B Conversion,
and no additional amounts were deposited into the trust account in respect of shares of Class A common stock held by our sponsor.

Our sponsors have agreed after
the Closing not to transfer, assign or sell any of their founder shares except as set forth in the Sponsor Share Restriction Agreement.

94

Private Placement

Simultaneously
with the initial public offering, our sponsor purchased an aggregate of 976,081 placement units at a price of $10.00 per unit for an aggregate
purchase price of $9,760,810. Each placement unit consisted of one placement share and one-half of one placement warrant to purchase one
share of our Class A common stock exercisable at $11.50. The remaining proceeds from the placement units and the proceeds from the initial
public offering following the partial exercise of the overallotment option in January 2022 were held in the trust account. At the Closing,
the placement units were separated into their component securities and the resulting 488,041 placement warrants were forfeited by our
sponsor in accordance with the terms of the Sponsor Share Restriction Agreement. The 976,081 placement shares became transferable 30 days
after the consummation of the Business Combination in accordance with the terms of the letter agreement.

On January 3, 2024, the
Company and the Sponsors entered into a subscription agreement (the “Subscription Agreement”) with Polar Multi-Strategy Master
Fund (“Polar”) to cover working capital requirements of the Company. Pursuant to the terms and subject to the conditions of
the Subscription Agreement, Polar agreed to contribute up to $550,000 to ESG Funding (the “Polar Contribution”), which
amount was contributed in full as of April 2024. The Polar Contribution shall be repaid upon the closing of an initial business combination.
The Polar Contribution was non-interest bearing and shall be repaid to, and at the election of, Polar (i) in shares of
common stock, at a rate of 1.0 share for each ten dollars ($10.00) of the Polar Contribution funded as of the Closing or (ii) in
cash.

In consideration of the Polar
Contribution, we agreed to issue 1.0 share of Class A Common Stock for each dollar of the Polar Contribution funded as of or prior
to the Closing, which shares shall be subject to no transfer restrictions or any other lock-up provisions