Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 238

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 238
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 their rights to liquidating distributions from the Trust Account with respect to their founder shares if Emerald fails to complete a business combination by the Extension Deadline. •In order to protect the amounts held in the Trust Account, the Sponsor has agreed that it will be liable to Emerald if and to the extent any claims by a vendor for services rendered or products sold to Emerald, or a prospective target business with which Emerald has entered into a transaction agreement, reduce the amount of funds in the Trust Account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the Trust Account. •Following the Closing, the Sponsor would be entitled to the repayment of any working capital loan and advances that have been made to Emerald and remain outstanding. If Emerald does not complete an initial business combination within the required period, it may use a portion of its working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. •Following the consummation of the Business Combination, New Fold will continue to indemnify Emerald’s existing directors and officers and will maintain a directors’ and officers’ liability insurance policy. •Upon the Closing, subject to the terms and conditions of the Merger Agreement, the Sponsor, Emerald’s officers and directors and their respective affiliates may be entitled to reimbursement for any reasonable out -of-pocketexpenses related to identifying, investigating and consummating an initial business combination, and repayment of any other loans. •Following the consummation of the Business Combination, Emerald’s President and Chief Executive Officer, Mr.Young, and an independent director of Emerald, Mr.Hohns, will serve as directors on the Board of Directors of New Fold. •Following the Closing and assuming no redemptions (after giving effect to the redemption of 112,068shares of Emerald Class A Common Stock in connection with the Third Extension Meeting on December17, 2024), Emerald expects the Sponsor to hold approximately 13.0% of the outstanding shares of New Fold Common Stock. Opinion of Emerald’s Financial Advisor The Emerald Board retained Northland to provide a fairness opinion in connection with the Merger. The Emerald Board decided to obtain such fairness opinion to determine (i) the fairness, from a financial point of view, to Emerald of the consideration paid by Emerald to the equityholders of Fold pursuant to the Merger Agreement, and (ii) whether Fold has