Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 429

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 429
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 Secured Convertible Note Upon the closing of the Business Combination, New Fold (i) will issue to an institutional investor (the “Investor”) a new senior secured convertible note in an aggregate principal amount of $20,000,000 in exchange for the December 2024 Initial Investor Note and, (ii) following the closing of the Business Combination, subject to the mutual discretion of Fold and the Investor, may issue to the Investor an additional Senior Secured Convertible Note in an aggregate principal amount of up to $10,000,000 (the “Additional Investor Note” and, together with the Initial Note, the “Investor Notes”), in each case, which will have substantially the same terms as the December 2024 Initial Investor Note. A form of the Investor Notes is attached to this proxy statement/prospectus as Annex I. The Investor Notes will be New Fold’s senior secured obligations and will be senior in right of payment to all of New Fold’s indebtedness, other than certain permitted indebtedness as described in the Investor Notes. The obligations will be secured by a first priority perfected lien on, and security interest in, substantially all present and future assets of New Fold, subject to certain exceptions. 270 The Investor Notes will accrue interest at a rate of 12.0% per annum, payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on March 31, 2025. The Investor Notes will mature thirty -sixmonths from the closing date of the Business Combination, unless extended pursuant to the terms of the Investor Notes. The Company may pay the interest in shares of New Fold Common Stock, subject to certain terms and conditions, or in cash (or in a combination thereof). All or any portion of the principal amount of the Investor Notes, plus accrued and unpaid interest, any late charges thereon and any other unpaid amounts (together, the “Conversion Amount”), will be convertible at any time, in whole or in part, at the holder’s option, into shares of New Fold Common Stock at an initial fixed conversion price of $11.50 per share, subject to certain adjustments. As of December 31, 2024, the Investor Notes would have been convertible into 1,739,130shares of New Fold Common Stock. Following the occurrence of an event of default, under circumstances described in the Investor Notes, a noteholder may alternatively elect to convert all or any portion of the Conversion Amount into shares