Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 11

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 11
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 19, 2023, the Sponsor determined to convert all the outstanding shares of Class B common stock into shares of Class A common stock on a one -for-onebasis (the “Class B Conversion”). (2)The non -managingsponsor investors hold as of the date of this proxy statement/prospectus, indirectly through membership interests in the Sponsor, approximately 96% of the placement units and approximately 49% of the Founder Shares. At Closing, all 488,041 warrants underlying the Private Placement Units will be forfeited as part of the Sponsor Share Restriction Agreement, and an aggregate of 3,297,500shares of Emerald Class A Common Stock will be transferred to Polar and participants in the Non -RedemptionAgreements, and upon the completion of the Business Combination, Sponsor and its affiliates will hold a total of 6,293,722shares of New Fold Common Stock. At Closing, the Working Capital Loans (including the Promissory Note, the October Note and the Tax Note) will

v be repaid, without interest. The retention of shares by Sponsor and its affiliates and the reimbursements payable to Sponsor under the Working Capital Loans at Closing will not result in a material dilution of the equity interests of non -redeemingEmerald Stockholders. Conflicts of Interest Since the Sponsor, its affiliates, representatives and the Emerald officers and directors (collectively, the “Sponsor Related Parties”) have interests that are different, or in addition to (and which may conflict with), the interests of the other holders of Emerald Class A Common Stock, a conflict of interest may exist in determining whether the Business Combination with Fold is appropriate. Such interests include that the Sponsor Related Parties will lose their entire investment in Emerald if Emerald does not complete a business combination. When you consider the recommendation of the Emerald board of directors (the “Emerald Board”) in favor of approval of the Business Combination Proposal, you should keep in mind that the Sponsor Related Parties, have interests in such proposal that are different from, or in addition to (which may conflict with), those of the Emerald shareholders generally. These conflicts of interest include, among other things, the interests listed below: •the beneficial ownership of the Sponsor and certain current and former members of the Emerald Board and officers of an aggregate of 9,591,222shares of Emerald Class A Common Stock, which shares were acquired for an aggregate investment of $9,785,810 at the time of Emerald’s formation and the IPO and would become worthless if Emerald does