Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 190

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 190
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 As a result, a bankruptcy court could seek to recover all amounts received by Emerald’s stockholders. In addition, the Emerald Board may be viewed as having breached its fiduciary duty to its creditors and/or having acted in bad faith, thereby exposing itself and Emerald to claims of punitive damages, by paying Emerald’s stockholders from the Trust Account prior to addressing the claims of creditors. If, before distributing the proceeds in the Trust Account to the Public Stockholders, Emerald files a bankruptcy petition or an involuntary bankruptcy petition is filed against Emerald that is not dismissed, the claims of creditors in such proceeding may have priority over the claims of Emerald’s stockholders and the per -shareamount that would otherwise be received by Emerald’s stockholders in connection with Emerald’s liquidation may be reduced. If, before distributing the proceeds in the Trust Account to the Public Stockholders, Emerald files a bankruptcy petition or an involuntary bankruptcy petition is filed against Emerald that is not dismissed, the proceeds held in the Trust Account could be subject to applicable bankruptcy law, and may be included in Emerald’s bankruptcy estate and subject to the claims of third parties with priority over the claims of Emerald’s stockholders. To the extent any bankruptcy claims deplete the Trust Account, the per -shareamount that would otherwise have been received by Emerald’s stockholders in connection with Emerald’s liquidation would be reduced. The Sponsor and Emerald’s officers and directors have potential conflicts of interest in recommending that stockholders vote in favor of approval of the Business Combination Proposal and approval of the other proposals described in this proxy statement/prospectus. 103 When considering the Emerald Board’s recommendation that Emerald’s stockholders vote in favor of the approval of the Business Combination Proposal, Emerald’s stockholders should be aware that Sponsor and certain of Emerald’s executive officers and directors have interests in the Business Combination that may be different from or in addition to (and which may conflict with) the interests of Emerald’s other stockholders. These interests include: •the beneficial ownership of the Sponsor and certain current and former members of the Emerald Board and officers of an aggregate of 8,615,141shares of Emerald Class A Common Stock which were acquired at the time of Emerald’s formation and the IPO and would become worthless if Emerald does not complete a business combination by the Extension Deadline, as such stockholders have waived any redemption right with respect to those shares. After giving effect to the Business Combination, the Sponsor and certain current and former members of the Emerald Board and officers would own up to an aggregate of 6,293,722