Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 188

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 188
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 operations or prospects of Emerald or Fold, regulatory considerations and general business, market, industry or economic conditions. Many of these factors are outside of the control of Emerald and Fold. Our Public Stockholders will experience immediate dilution due to the issuance of shares of Emerald Class A Common Stock to Fold stockholders in the Business Combination. Having a minority share position may reduce the influence that our current stockholders have on the management of New Fold. It is anticipated that, following the completion of the Business Combination (for illustrative purposes), Emerald’s existing stockholders, including our Sponsor, will retain an ownership interest in the range of 9.8%, 7.6% and 2.4% of New Fold under the minimum redemption, 25% redemption and maximum redemption scenarios, respectively, Fold stockholders will own an amount in the range of 70.5%, 72.3% and 76.4% of New Fold under the 100 minimum redemption, 25% redemption and maximum redemption scenarios, respectively. For a description of the assumptions used in the minimum redemption, 25% redemption and maximum redemption scenarios, please see the section entitled “ Questions and Answers About the Business Combination — What equity stake will current Emerald stockholders and Fold stockholders have in New Fold?” To the extent that any of the Emerald Warrants are exercised for New Fold Common Stock, current stockholders may experience substantial dilution. Such dilution could, among other things, limit the ability of our current stockholders to influence management of New Fold through the election of directors following the Business Combination. Neither Emerald nor its stockholders will have the protection of any indemnification, escrow, price adjustment or other provisions that allow for a post-closing adjustment to be made to the total Merger Consideration in the event that any of the representations and warranties made by Fold in the Merger Agreement ultimately proves to be inaccurate or incorrect. The representations and warranties made by Fold and Emerald to each other in the Merger Agreement will not survive the consummation of the Business Combination. As a result, Emerald and its stockholders will not have the protection of any indemnification, escrow, price adjustment or other provisions that allow for a post -closingadjustment to be made to the total Merger Consideration if any representation or warranty made by Fold in the Merger Agreement proves to be inaccurate or incorrect. Accordingly, to the extent such representations or warranties are incorrect, Emerald would have no indemnification claim with respect thereto and its financial condition or results of operations