Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 254

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 254
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, after
separately valuing the warrants and the December 2024 Initial Investor Note.

Total interest expense recognized related to the
December 2024 Initial Investor Note for the year ended December 31, 2024 was $0.2 million, comprised of a nominal accrual of contractual
interest expense and $0.2 million of amortization of the debt discount and debt issuance costs. Interest is calculated on the basis of
a 360-day year and is payable quarterly starting March 31, 2025, in cash or paid-in-kind and capitalized to the loan balance (“PIK”)
until the Public Company Date. Subsequent to that date, interest is payable in cash or shares (or a combination thereof). Interest expense
on the Investor Notes commenced accruing on the date of issuance.

All Investor Notes, plus accrued and unpaid interest,
are convertible at any time, at the Investor’s option, into shares of the Company’s common stock at an initial fixed conversion
price of $11.50 per share, subject to certain adjustments and alternative conditions. Upon a change of control of the Company, the Investor
may require the Company to redeem all, or any portion, of the Investor Notes at a price stipulated by certain conditions as discussed
within the SPA.

The Investor Notes provide for certain events
of default, including, among other things, any breach of the covenants described in the SPA. In connection with an event of default, the
Investor may require the Company to redeem all or any portion of the Investor Notes at a premium set forth in the SPA.

The Company is subject to certain customary affirmative
and negative covenants regarding the rank of the Investor Notes, the incurrence of indebtedness, the existence of liens, the repayment
of indebtedness, the payment of cash in respect of dividends, distributions or redemptions, the transfer of assets, the maturity of other
indebtedness, and transactions with affiliates, among other customary matters. The Company is also subject to financial covenants and
was in compliance with these covenants as of December 31, 2024.

On February 14, 2025, following the finalization
of the Merger, the maturity of the Investor Notes extended to 36 months from the Public Company Date. The Series B and Series C Warrants
outstanding became exercisable at a price of $0.001 and $11.50 per share and expire eight years from the date of issuance