Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 559

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 559
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P.
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 2024
(Unaudited) NOTE 6. COMMITMENTS AND CONTINGENCIES (cont.)

the relative fair values of the base instrument of the investment amount and the Common Stock in accordance with the guidance in ASC 470 “Debt.” At September 30, 2024 and December 31, 2023, $ and $0 were outstanding under the promissory note of the subscription agreement, respectively.

On April 2, 2024 and January 2, 2024, Polar contributed a $ Capital Contribution and a $ Capital Contribution, respectively, pursuant to the Subscription Agreement.

| Principal value of promissory note January 13, 2024 |     | $ |  350,000 |   |
| Principal value of promissory note April 2, 2024    |     |   |  200,000 |   |
| Debt discount, net of amortization                  |     |   | (111,499 | ) |
| Promissory note, net of discount                    |     | $ |  438,501 |   |

Merger Agreement

On July 24, 2024, the Company and Fold, Inc. announced that they have entered into an Agreement and Plan of Merger by and among the Company, EMLD Merger Sub Inc., a wholly-owned subsidiary of the Company, and Fold, pursuant to which, among other things, Merger Sub will be merged with and into Fold with Fold surviving the merger as a wholly-owned subsidiary of the Company.

As a result of the Transactions, Fold will become a subsidiary of the Company, with the former stockholders of Fold becoming stockholders of the Company.

Consideration

The aggregate consideration to be paid in the Transactions will consist of shares of the Company’s Class A common stock based on Fold’s pre-money equity value of $ million. In the event the 60-volume weighted average price of Bitcoin as of the day immediately prior to the closing of the Merger (the “Closing”) is greater than $, the aggregated consideration to be paid in the Transactions will be increased by % of the increase in value of the amount of Bitcoin in Fold’s treasury as of July 24, 2024, up to a maximum of $ million. There are no other adjustments to the consideration amount contemplated in the Merger Agreement.

For a description of the Business Combination and certain agreements executed in connection ther