Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 57

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 57
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 Stock will be converted into New Fold Common Stock. Fold RSU Awards.At the Effective Time, each outstanding Fold RSU Award will be converted into an award of restricted stock units covering New Fold Common Stock in accordance with the terms of the Merger Agreement. Fold Preferred Stock.Immediately prior to the Effective Time, Fold Preferred Stock will be converted into Fold Common Stock. December 2024 Initial Investor Note.At the Effective Time, the December 2024 Initial Investor Note will be exchanged for the New Fold Initial Investor Note, which shall have the same terms as the December 2024 Initial Investor Note. December 2024 Investor Warrants.At the Effective Time, the outstanding December 2024 Investor Warrants will be exchanged for the New Fold Investor Warrants, which shall have the same terms as the December 2024 Investor Warrants. Fold Simple Agreements for Future Equity (“SAFEs”) At the Effective Time, outstanding Fold SAFEs will be converted into Fold Common Stock based on the valuation caps or discount rates stated within the terms of the individual SAFE agreements. Consideration to be Received in the Business Combination At the Closing, holders of Fold Common Stock (including holders of Fold Preferred Stock and Fold SAFEs, which will convert or be deemed to convert into Fold Common Stock immediately prior to the Closing) shall receive merger consideration in shares of Emerald Class A Common Stock equal to the quotient obtained by (a) the Aggregate Merger Consideration, dividedby (b) the number of shares of Fold Fully Diluted Capital Stock (the “Exchange Ratio”). In the event the 60 -volumeweighted average price of Bitcoin as of the day immediately prior to the Closing is greater than $90,000, the Aggregate Merger Consideration to be paid to holders of Fold Common Stock will be increased by 20% of the increase in value of the amount of Bitcoin in Fold’s treasury as of July 24, 2024, up to a maximum increase of $54.75 million. 25 Representations and Warranties The Merger Agreement contains representations and warranties of the parties thereto that are customary for a transaction of this size and nature. The representations and warranties are, in many respects, qualified by materiality and knowledge, and will not survive the Business Combination, but their accuracy forms the basis of some of the conditions to the obligations of Emerald, Merger Sub and Fold to complete the Business Combination. Fold has made representations and warranties relating to, among other things, Fold’s organization, good standing and qualification, Fold’s capital