Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 183

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 183
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we,” “us,” or “our” in this subsection refer to Emerald. The Business Combination and New Fold becoming a publicly listed company as a result of the Merger differs significantly from an underwritten initial public offering. There are risks to our stockholders who are not affiliates of the Sponsor of becoming stockholders of New Fold through the Business Combination rather than acquiring securities of Fold directly in an underwritten public offering, including no independent due diligence review by an underwriter and conflicts of interest of the Sponsor. Because there is no independent third -partyunderwriter involved in the Business Combination or the issuance of securities in connection therewith, investors will not receive the benefit of any outside independent review of Emerald’s or Fold’s respective finances and operations. Underwritten public offerings of securities conducted by a licensed broker -dealerare subjected to a due diligence review by the underwriter or dealer manager to satisfy statutory duties under the Securities Act, the rules of Financial Industry Regulatory Authority, Inc. (FINRA) and the national securities exchange where such securities are listed. Additionally, underwriters or dealer -managersconducting such public offerings are subject to liability for any material misstatements or omissions in a registration statement filed in connection with the public offering. As no such review will be conducted in connection with the Business Combination, our stockholders must rely on the information in this proxy statement/prospectus and will not have the benefit of an independent review and investigation of the type normally performed by an independent underwriter in a public securities offering. In addition, the Sponsor and certain of Emerald’s officers and directors have interests in the Business Combination that may be different from, or in addition to, the interests of our stockholders generally. Such interests may have influenced Emerald’s directors in making their recommendation that you vote in favor of the Business Combination Proposal and the other proposals described in this proxy statement/prospectus. See “ The exercise of Emerald’s directors’ and officers’ discretion in agreeing to changes or permitted waivers in the terms of the Business Combination may result in a conflict of interest when determining whether such changes to the terms of the Business Combination or waivers of conditions are appropriate and in the best interests of Emerald stockholders.” and “ Our Public Stockholders will experience immediate dilution due to the issuance of shares of Emerald Class A Common Stock to Fold stockholders in the Business Combination. Having a minority share position may reduce the influence that our current stockholders have on the management of New Fold.” Because there are no underwriters engaged in connection with the Business Combination, prior to the opening of