Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 282

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 282
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 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 before such redemptions. You are urged to consult with your tax advisor as to the tax considerations of a redemption. If none of the foregoing tests are satisfied, then the redemption proceeds will be treated as a corporate distribution and the tax effects will be as described below under “ U.S. Holder — Redemption of Emerald Public Shares Treated as Distributions” or “ Non -U .S. Holder — Redemption of Emerald Public Shares Treated as Distributions,” as applicable. After the application of those rules, any remaining tax basis you have in the redeemed Emerald Public Shares will be added to your adjusted tax basis in your remaining Emerald Public Shares, or, if you have none, to your adjusted tax basis in Public Warrants held by you or possibly in other shares constructively owned by you