Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 364

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 364
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, we held no debt instruments. For accounting purposes, outstanding SAFEs are classified as liabilities. However, these agreements are structured to be settled via the delivery of common and/or preferred shares upon execution of an equity financing event. If a liquidity event occurs, the investors have the option of settling in the delivery of common and/or preferred shares or a cash payment. In June 2024, we entered into SAFEs to raise $50.0 million, and in July 2024, we entered a SAFE to raise an additional $14.1 million. Proceeds from these financings were received in bitcoin which was added directly to our bitcoin investment treasury. Proceeds from the June SAFEs are restricted from use as operating capital for 18 months following the financing and must be used solely for treasury purposes over that time period. Proceeds from the July SAFE do not contain a similar restriction. Our bitcoin investment treasury is considered a long -terminvestment and we do not have plans or intentions to liquidate that treasury in the near term. We do not believe we will need to sell or engage in other transactions with respect to any of our bitcoin treasury within the next twelve months to meet our working capital requirements, although we may from time to time sell or engage in other transactions with respect to our bitcoin treasury as part of treasury management operations. On December24, 2024, Fold entered into a Securities Purchase Agreement (the “December 2024 Securities Purchase Agreement”) with an institutional investor (the “Investor”), pursuant to which (i) Fold issued to the Investor a Senior Secured Convertible Note in an aggregate principal amount of $20,000,000 (the “Initial Investor Note”), and (ii) Fold may issue to the Investor in connection with the closing of the Business Combination an additional Senior Secured Convertible Note in an aggregate principal amount of $10,000,000 (the “Additional Investor Note” and, together with the Initial Investor Note, the “Investor Notes”), subject to the mutual discretion of Fold and the Investor. The Investor Notes will be convertible into shares of New Fold Common Stock at a conversion price of $11.50 per share. The Investor Notes are secured by Fold’s assets as collateral, including a portion of Fold’s proprietary bitcoin, and will mature three years after the closing of the Business Combination. 226

In connection with the Initial Note, the Investor received Series A Warrants, Series B Warrants, and Series C Warrants exercisable for shares of New Fold Common Stock with an exercise