Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 287

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 287
---
 as applicable). Please see the section entitled “ Treatment of Redemption for U.S. Federal Income Tax Purposes” above and consult your own tax advisors to determine if the redemption should be treated as a sale or exchange for U.S. federal income tax purposes in your particular circumstances. Non-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 Non -U.S. Holders who hold shares of New Fold Common Stock following the Merger; and (2) the exercise by Non -U.S. Holders of Emerald Public Shares of their redemption rights in connection with the Merger. 169 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 and accumulated earnings and profits (as determined for U.S. federal income tax purposes) will be taxable to a Non -U.S. Holder as ordinary dividend income on the date such distribution is actually or constructively received by such Non -U.S. Holder. Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the Non -U.S. Holder’s adjusted tax basis in New Fold Common Stock or the Emerald Public Shares redeemed, as applicable. Any remaining excess will be treated as gain realized on the sale or other disposition of New Fold Common Stock or the Emerald Public Shares, as applicable, and will be treated as described below under the section entitled “ Non -U .S. Holders — Redemption of Emerald Public Shares Treated as Sale or Exchange.” Dividends paid to a Non -U.S. Holder of New Fold Common Stock (or the proceeds received by a Non -U.S. Holder in a redemption of Emerald Public Shares treated as dividends) will be subject to withholding of U.S. federal income tax at a 30% rate, unless such Non -U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate as described below. However, dividends that are effectively connected with the conduct of a trade or business by the Non -U.S. Holder within the