Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 283

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 283
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 any shares constructively owned by you, such as any Emerald Public Shares constructively held by you as a result of owning any Public Warrants) relative to all of the Emerald Public Shares outstanding both before and after all redemptions (by you and other holders of Emerald Public Shares) in connection with the Merger. The redemption of Emerald Public Shares generally will be treated as a sale of the Emerald Public Shares (rather than as a corporate distribution) if the redemption (i) results in a “complete termination” of your interest in Emerald, (ii) is “not essentially equivalent to a dividend” with respect to you or (iii) is a “substantially disproportionate redemption” with respect to you. These tests are explained more fully below. In determining whether any of the foregoing tests are satisfied, you must take into account not only Emerald Public Shares actually owned by you, but also Emerald Public Shares that are constructively owned by you. You may constructively own, in addition to shares owned directly, shares owned by certain related individuals and entities in which you have an interest or that have an interest in you, as well as any shares you have a right to acquire by exercise of an option (such as Public Warrants). There will be a complete termination of your interest if either (i) all of the shares of Emerald Public Shares actually and constructively owned by you are redeemed or (ii) all of the Emerald Public Shares actually owned by you are redeemed and you are eligible to waive, and do waive, the attribution of shares owned by certain family members and you do not constructively own any other shares. The redemption of Emerald Public Shares will not be essentially equivalent to a dividend if your redemption results in a “meaningful reduction” of your proportionate interest in Emerald. Whether the redemption will 167 result in a meaningful reduction in your proportionate interest in Emerald will depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a small minority stockholder in a publicly held corporation who exercises no control over its corporate affairs may constitute such a “meaningful reduction.” In order to meet the “substantially disproportionate” test, the percentage of outstanding Emerald Public Shares actually and constructively owned by you immediately following the redemptions (by you and other holders of Emerald Public Shares) of the Emerald Public Shares must, among other requirements, be less than 80% of the percentage of the outstanding Emerald Public Shares actually and constructively owned by you immediately