Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 281

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 281
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 certain determinations made at the partner or equityholder level. Accordingly, we urge partners in entities or arrangements treated as partnerships for U.S. federal income tax purposes and equityholders in such other pass -throughentities holding New Fold Common Stock or Emerald Public Shares to consult their tax advisors regarding the U.S. federal income tax considerations of the exercise by such partnerships or other pass -throughentities of their redemption rights in connection with the Merger. The following discussion is for general information purposes only and does not purport to discuss all of the U.S. federal income tax considerations or such considerations as may be applicable to a U.S. Holder’s particular circumstances. You are urged to consult with your tax advisor as to the tax considerations of the Merger, the ownership and disposition of New Fold Common 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