Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 281

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 281
---
 Purposes We have not requested, and do not intend to request, a ruling from the IRS as to the U.S. federal income tax considerations of the redemption of Emerald Public Shares. Consequently, no assurance can be given that the IRS will not assert, or that a court would not sustain, a position contrary to any of those set forth below. Each holder of Emerald Public Shares is urged to consult its tax advisor with respect to the particular tax consideration of the redemption to such holder. The discussion below applies to you if you are a holder of Emerald Public Shares that exercises the redemption rights described above under “ Special Meeting of Emerald Stockholders — Redemption Rights” with respect to your Emerald Public Shares. The treatment of a redemption of your Emerald Public Shares for U.S. federal income tax purposes will depend on whether the redemption qualifies as a sale or exchange of the Emerald Public Shares under Section 302 of the Code. If the redemption qualifies as a sale or exchange of the Emerald Public Shares, you will recognize gain or loss as described below under “ U.S. Holder — Redemption of Emerald Public Shares Treated as Sale or Exchange” or “ Non -U .S. Holder — Redemption of Emerald Public Shares Treated as Sale or Exchange, ”as applicable. If the redemption does not qualify as a sale or exchange of Emerald Public Shares, you will be treated as receiving a corporate distribution subject to tax 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. Whether a redemption qualifies for sale or exchange treatment will depend largely on the total number of shares of Emerald Public Shares treated as held by you (including any shares constructively owned by you, such as any Emerald Public Shares constructively held by you as a result of owning any Public Warrants) relative to all of the Emerald Public Shares outstanding both before and after all redemptions (by you and other holders of Emerald Public Shares) in connection with the Merger. The redemption of Emerald Public Shares generally will be treated as a sale of the Emerald Public Shares (rather than as a corporate distribution) if the redemption (i) results in a “complete termination” of your interest in Emerald, (ii) is “not essentially equivalent to a dividend” with respect to you or (iii) is a “substantially disproportionate redemption” with respect to you. These tests are explained more fully below. In determining whether any of the foregoing