Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 279

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 279
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 to complete the Merger are not conditioned on the receipt of opinions from counsel to the effect that the Merger will qualify as a reorganization for U.S. federal income tax purposes. Consequently, no assurance can be given that the IRS will not assert, or that a court would not challenge, the treatment of the Merger described below or that a court would not sustain such a challenge. If the IRS were to successfully challenge the tax treatment of the Merger, U.S. Holders of Fold could be required to fully recognize gain with respect to such Fold Common Stock as a result of the Merger. 166 Holders of Emerald Public Shares who do not exercise their redemption rights will not be selling, exchanging, or otherwise transferring their Emerald Public Shares as described in this discussion and will therefore not be subject to any material U.S. federal income tax consequences as a result of the Merger, regardless of whether or not the Merger qualifies as a “reorganization” within the meaning of Section 368(a) of the Code. Allocation of Purchase Price between Emerald Public Shares and Public Warrants A holder of units of Emerald Public Shares and Public Warrants generally is required to allocate the issue price paid for Emerald Public Shares and Public Warrants based on the relative fair market value of each at the time of purchase of the units. The price allocated to each Emerald Public Share and Public Warrant is the holder’s tax basis in such Emerald Public Share (and following the Merger, tax basis in such share of New Fold Common Stock) or Public Warrant, respectively. A holder’s purchase price allocation is not binding on the IRS or the courts. No assurance can be given that the IRS or the courts will agree with a U.S. Holder’s allocation. Accordingly, each holder of units of Emerald is advised to consult such holder’s own tax advisors with respect to its basis in the Emerald Public Shares. Treatment of Redemption for U.S. Federal Income Tax Purposes We have not requested, and do not intend to request, a ruling from the IRS as to the U.S. federal income tax considerations of the redemption of Emerald Public Shares. Consequently, no assurance can be given that the IRS will not assert, or that a court would not sustain, a position contrary to any of those set forth below. Each holder of Emerald Public Shares is urged to consult its tax advisor with respect to the particular tax consideration of the redemption to such holder. The discussion below applies to you if you are a holder of Emerald Public Shares that exercises the redemption rights described above under