Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 280

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 280
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 Stock or the redemption of Emerald Public Shares in your particular circumstances, including the applicability and effect of the alternative minimum tax and any state, local, foreign or other tax laws and of changes in those laws. Tax Consequences of the Merger to Holders of Emerald Public Shares Fold and Emerald intend qualification of the Merger as a “reorganization” within the meaning of Section 368(a) of the Code. Fold and Emerald have not sought and will not seek a ruling from the IRS with respect to the tax treatment of the Merger, and as a result, the obligations of the parties 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