Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 201

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 201
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 may be reduced below $10.10 per share. Emerald stockholders may be held liable for claims by third parties against Emerald to the extent of distributions received by them upon redemption of their shares. Under the DGCL, stockholders may be held liable for claims by third parties against a corporation to the extent of distributions received by them in a dissolution. The pro rataportion of the Trust Account distributed to the Public Stockholders upon the redemption of the Public Shares in the event Emerald does not complete an initial business combination by the Extension Deadline may be considered a liquidating distribution under Delaware law. If a corporation complies with certain procedures set forth in Section 280 of the DGCL intended to ensure that it makes reasonable provision for all claims against it, including a 60 -daynotice period during which any third -partyclaims can be brought against the corporation, a 90 -dayperiod during which the corporation may reject any claims brought, and an additional 150 -daywaiting period before any liquidating distributions are made to stockholders, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s pro ratashare of the claim or the amount distributed to the stockholder, and any liability of the stockholder would be barred after the third anniversary of the dissolution. However, it is Emerald’s intention to redeem the Public Shares as soon as reasonably possible following the Extension Deadline in the event it does not complete its initial business combination and, therefore, Emerald does not intend to comply with the foregoing procedures. Because Emerald will not be complying with Section 280, Section 281(b) of the DGCL requires Emerald to adopt a plan, based on facts known to Emerald at such time that will provide for Emerald’s payment of all existing and pending claims or claims that may be potentially brought against Emerald within the 10 years following its dissolution. However, because Emerald is a blank check company, rather than an operating company, and Emerald’s operations are limited to searching for prospective target businesses to acquire, the only likely claims to arise would be from Emerald’s vendors (such as lawyers, investment bankers, etc.) or prospective target businesses. If Emerald’s plan of distribution complies with Section 281(b) of the DGCL, any liability of stockholders with respect to a liquidating distribution is limited to the lesser of such stockholder’s pro ratashare of the claim or the amount distributed to the stockholder, and any liability of the stockholder would likely be barred after the third anniversary of the dissolution