Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 173

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 173
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 or subscription with New Fold; and •Fold has expended and will continue to expend significant costs, fees and expenses for professional services and transaction costs in connection with the Business Combination. If any of the aforementioned risks were to materialize, they could lead to significant costs which may impact New Fold’s results of operations and cash available to fund its business. Third parties may terminate or alter existing contracts or relationships with Emerald or Fold. Emerald and Fold have contracts with distributors, affiliates, landlords, licensors, and other business partners that may require Emerald or Fold, as applicable, to obtain consent from these other parties in connection with the Business Combination. If these consents cannot be obtained, the counterparties to these contracts and other third parties with which Emerald or Fold currently have relationships may have the ability to terminate, reduce the scope of, or otherwise materially adversely alter their relationships with either or both parties in anticipation of the Business Combination, or with New Fold following the Business Combination. The pursuit of such rights may result in Emerald, Fold, or New Fold suffering a loss of potential future revenue or incurring liabilities in connection with a breach of such agreements and losing rights that are material to its business. Any such disruptions could limit New Fold’s ability to achieve the anticipated benefits of the Business Combination. The adverse effect of such disruptions could also be exacerbated by a delay in the closing of the Business Combination or the termination of the Merger Agreement. Subsequent to the consummation of the Business Combination, New Fold may be required to take write-downs or write-offs, restructuring and impairment or other charges that could have a significant negative effect on its financial condition, results of operations and share price, which could cause you to lose some or all of your investment. Although Emerald has conducted due diligence on Fold, Emerald cannot assure you that this diligence will surface all material issues that may be present in Fold’s business, that it would be possible to uncover all material issues through a customary amount of due diligence or that factors outside of Fold’s business and outside of its control will not later arise. As a result of these factors, New Fold may be forced to later write -downor write -offassets, restructure its operations or incur impairment or other charges that could result in its reporting losses. Even if Emerald’s due diligence successfully identified certain risks, unexpected risks may arise and previously known risks may materialize in a manner not consistent with Emerald’s risk analysis. Even though these charges may be non -cashitems and would not have an immediate impact on New Fold’s liquidity, the fact