Company: FLDDW
Filing Date: 2025-06-17
Form Type: 8-K
Source: 0000950170-25-087072
Chunk: 2

Company: Fold Holdings, Inc.
Filing Date: 2025-06-17
Form: 8-K
Item: Item 1.01
Chunk 2
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 purchase Shares under the Facility to the extent that after giving effect to such purchase and sale the aggregate number of Shares issued under the Facility together with any shares of Common Stock issued in connection with any other transaction that may be considered part of the same series of transactions, where the number of shares issued would exceed the number of shares representing 19.99% of the issued and outstanding shares of Common Stock as of the date of the Facility (the “ Exchange Cap”), unless the Company has obtained stockholder approval as required for issuance of Common Stock in excess of the Exchange Cap, in accordance with applicable rules of Nasdaq. Accordingly, the Company may not have access to the right to sell the full Commitment to the Investor. As of June 15, 2025, there were 46,434,655 shares of Common Stock outstanding, and therefore the Exchange Cap is 9,282,287 shares of Common Stock. In connection with the Facility, the Company expects to initially register for resale up to 9,282,287 shares of Common Stock, which represents the maximum number of shares of Common Stock that it could register without obtaining stockholder approval.

There are substantial risks to the Company’s stockholders as a result of the sale and issuance of Shares to the Investor under the Facility. These risks include the potential for substantial dilution and significant declines in the share price of the Company’s securities. See “ Effect of Sales of Shares Under the Facility on Stockholders” below.

Conditions to Each Advance under the Facility

The Investor’s obligation to accept Advance Notices that are delivered by the Company in accordance with the terms of the Facility and to purchase Shares under the Facility is subject to the satisfaction, at the applicable Advance Notice Date, of certain conditions, including without limitation: (i) the accuracy in all material respects of the representations and warranties of the Company included in the Facility; (ii) the registration statement pursuant to which the Investor is permitted to utilize a prospectus for resale of the Shares issuable pursuant to such Advance Notice has been declared effective under the Securities Act of 1933, as amended (the “ Securities Act”) by the SEC; (iii) the Company shall have obtained all permits and qualifications required by any applicable state for the offer and issuance of all Shares issuable pursuant to such Advance Notice or shall have the availability of exemption therefrom, and the issuance of such Shares shall be legally permitted by all laws and regulations to which the Company is subject; (iv) no condition, occurrence, state of facts or events constituting a