Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 206

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 206
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. Description of the Business Combination On July 24, 2024, FTAC Emerald and EMLD Merger Sub Inc. (“Merger Sub”), a wholly -ownedsubsidiary of Emerald, entered into a Merger Agreement with Fold, pursuant to which, among other things, Merger Sub will be merged with and into Fold with Fold surviving the Merger as a wholly -ownedsubsidiary of Emerald (the “Business Combination” and, together with the other transactions contemplated by the Merger Agreement, the “Transactions”). As a result of the Transactions, Fold will become a subsidiary of Emerald, with the former stockholders of Fold becoming stockholders of Emerald. The aggregate consideration to be paid in the Transactions will consist of shares of Emerald Class A Common Stock based on Fold’s pre -moneyequity value of $365 million. In the event the 60 -volumeweighted average price of Bitcoin as of the day immediately prior to the closing of the Business Combination (the “Closing”) is greater than $90,000, the aggregate consideration to be paid in the Transactions 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 of $54.75 million. There are no other adjustments to the consideration amount contemplated in the Merger Agreement. Based on Bitcoin pricing as of September30, 2024, we have not included any incremental consideration, however, changes in Bitcoin prices could result in meaningful changes to the consideration paid as outlined above. Description of the December 2024 Initial Investor Financing On December24, 2024, Fold entered into the December 2024 Securities Purchase Agreement with ATW Growth Opportunities SPV, LLC (the “Investor”) pursuant to which the Investor purchased an Initial Note with an aggregate principal amount of $20.0million which is convertible to shares of Common Stock of Fold prior to the Business Combination, or shares of Common Stock of New Fold subsequent to the Business Combination. In conjunction with the December 2024 Securities Purchase Agreement and Initial Investor Note, Fold also issued Series A, Series B, and Series C Warrants to the Investor (collectively with the Initial Note, the “December 2024 Initial Investor Financing”) for 0.9million, 0.5million, and 0.9million shares, respectively. The December 2024 Series A Warrants are available for exercise for a period of eight years from December24, 202