Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 283

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 283
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. 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 be applied against and reduce (but not below zero) the 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 “ U.S. Holders — Redemption of Emerald Public Shares Treated as Sale or Exchange.” Provided that the requisite holding period is satisfied, any such dividends paid to corporate U.S. Holders will qualify for the dividends received deduction. Such dividends may be subject to the “extraordinary dividends” provisions of the Code (which could cause a reduction in the tax basis of such corporate U.S. Holder’s shares and