Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 212

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 212
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 are reasonable but are subject to change. Emerald and Fold are collectively referred to herein as the “Companies,” and the Companies, subsequent to the Business Combination and the Transactions, are referred to herein as “New Fold”. The Business Combination will be accounted for as a reverse recapitalization because Fold has been determined to be the accounting acquirer under Financial Accounting Standards Board’s Accounting Standards Codification Topic 805, Business Combinations(“ASC 805”) under the minimum redemption, 25% redemption and maximum redemption scenarios. The determination is primarily based on the evaluation of the following facts and circumstances taking into consideration each of the redemption scenarios: •the pre -combinationequityholders of Fold will hold the majority of voting rights in New Fold; •the pre -combinationequityholders of Fold will have the right to appoint the majority of the directors on the New Fold Board; •the senior management of Fold will comprise the senior management of New Fold; and •the operations of Fold will comprise the ongoing operations of New Fold. Under the reverse recapitalization model, the Business Combination will be treated as Fold issuing equity for the net assets of Emerald, with no goodwill or intangible assets recorded. The unaudited pro forma condensed combined information contained herein assumes that Emerald’s shareholders approve the Business Combination. Emerald’s public shareholders may elect to redeem their public shares for cash even if they approve the Business Combination. Emerald cannot predict how many of its public shareholders will exercise their right to have their Class A common stock redeemed for cash. As a result, Emerald has elected to provide the unaudited pro forma condensed combined financial information under three different redemption scenarios, which produce different allocations of total New Fold equity between holders of the common shares. The unaudited pro forma condensed combined financial information has been prepared using the assumptions below with respect to the potential redemption of Emerald Class A Common Stock into cash: • Assuming Minimum Redemptions:This presentation assumes that no Emerald shareholders exercise redemption rights with respect to their public shares in addition to any redemptions that have occurred subsequent to September30, 2024. • Assuming 25% Redemptions:This scenario assumes that 1.2 million Class A common shares are redeemed for an aggregate redemption payment of approximately $13.1 million. • Assuming Maximum Redemptions:This scenario assumes that 3.6 million Class A common shares are redeemed for an aggregate redemption payment of approximately $39.4 million. This maximum redemption scenario is based on the maximum number of redemptions which may occur but which would