Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 212

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 212
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 legal, third party advisory, investment banking, and other miscellaneous fees. Transaction costs previously incurred that are not direct and incremental to the transaction have been included within the historical statement of operations of Emerald and Fold. h)Reflects the gross cash proceeds from the December 2024 Initial Investor Financing of $20.0million from the Investor, bifurcated between convertible notes, net and additional paid in capital based on the estimated relative fair value of the instruments, net of the debt discount of $1.0million and estimated issuance costs accrued for and paid in conjunction with the transaction, totaling $1.6million. Additionally, assumes the exercise of 500,000 December 2024 Series B Warrant Shares for a nominal exercise price of $0.001 per share. Note that the estimated fair value of the warrants was calculated under a Black -Scholesmodel utilizing the enterprise valuation of Fold’s common shares as of September30, 2024. The additional pro forma adjustment assuming 25% redemptions: i)Reflects $13.1 million withdrawal of funds from the trust account to fund the redemption of 1.2 million public shares of Emerald at approximately $11.02 per share, calculated as 25% of the Class A common shares subject to possible redemption. Note that clause Section 8.1(f) to the Merger Agreement requires remaining net tangible assets of $5.0 million of New Fold which limits the maximum redemption scenario to approximately 75% of redeemable Class A common shares. The additional pro forma adjustment assuming maximum redemptions: x)Reflects $39.4 million withdrawal of funds from the Trust Account to fund the redemption of 3.6 million public shares of Emerald at approximately $11.02 per share, with remaining net tangible assets of $5.0 million as required by Section 8.1(f) to the Merger Agreement. Additionally, reflects the accrual of the excise tax liability calculated as 1% of the shares redeemed. Note 3. Unaudited Pro Forma Condensed Combined Statements of Operations The pro forma adjustments included in the unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2024 and the year ended December 31, 2023, are as follows: a)Represents the elimination of interest income on Emerald’s Trust Account for the nine months ended September 30, 2024, and the year ended December 31, 2023. b)Rep