Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 173

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 173
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, or the perception that such sales could occur, could harm the prevailing market price of our securities. These sales, or the possibility that these sales may occur, also might make it more difficult for us to sell equity securities in the future at a time and at a price that we deem appropriate. New Fold may issue additional shares or other equity securities without your approval, which would dilute your ownership interest and may depress the market price of New Fold’s Common Stock. Pursuant to the Incentive Award Plan and the ESPP, following the consummation of the Business Combination, New Fold may initially issue an aggregate of up to the number of shares equal to 12% of New Fold Common Stock issued and outstanding at the Effective Time on a fully -dilutedbasis, which amount will automatically increase annually and may further be subject to increase from time to time. For additional information about the Incentive Award Plan and the ESPP, please read the discussion under the heading “Proposal No. 5 — The Equity Incentive Plan Proposal” and “Proposal No. 6 — The Employee Stock Purchase Plan Proposal.” The combined company may also issue additional shares of New Fold Common Stock or other equity securities of equal or senior rank in the future in connection with, among other things, future acquisitions or repayment of outstanding indebtedness, without shareholder approval, in a number of circumstances. The issuance of additional shares or other equity securities of equal or senior rank would have the following effects: •existing shareholders’ proportionate ownership interest in New Fold will decrease; •the amount of cash available per share, including for payment of dividends in the future, may decrease; •the relative voting strength of each share of previously outstanding common stock may be diminished; and •the market price of New Fold Common Stock may decline. Fluctuations in operating results, quarter to quarter earnings and other factors, including incidents involving customers and negative media coverage, may result in significant decreases in the price of New Fold’s securities. The stock markets experience volatility that is often unrelated to operating performance. These broad market fluctuations may adversely affect the trading price of New Fold Common Stock, and, as a result, there may be significant volatility in the market price of New Fold Common Stock. Separately, if we are unable to achieve profitability in line with investor expectations, the market price of New Fold Common Stock will likely decline when it becomes apparent that the market expectations may not be realized. In addition to operating results, many economic and seasonal factors outside of our control could have an adverse effect