Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 292

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 292
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 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 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, Fold U.S. Holders could be required to fully recognize gain with respect to such Fold Common Stock as a result of the Merger. Tax Consequences of the Merger to Fold U.S. Holders For purposes of this discussion, a “Fold U.S. Holder” is a beneficial owner of Fold Common Stock that is, for U.S. federal income tax purposes: •an individual citizen or resident of the United States; •a corporation (or any other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia; •an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or •a trust that (1) is subject to the primary supervision of a U.S. court and the control of one or more “United States persons” (within the meaning of Section 7701(a)(30) of the Code), or (2) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes. A Fold U.S. Holder of Fold Common Stock that receives New Fold Common Stock in exchange for shares of Fold Common Stock in the Merger will not recognize gain or loss for U.S. federal income tax purposes as a result of the Merger. A Fold U.S. Holder’s aggregate tax basis in the New Fold Common Stock received in exchange for the Fold Common Stock surrendered in connection with the Merger will equal the Fold U.S. Holder’s aggregate adjusted tax basis in the shares of Fold Common Stock exchanged therefor. A Fold U.S. Holder’s holding period in the New Fold Common Stock received will include the holding period for the holder’s shares of Fold Common Stock surrendered in exchange therefor. If a Fold U.S. Holder has acquired different blocks of Fold Common Stock at different times or at different prices, then such holder’s tax basis and holding period in shares of New Fold Common Stock received in the Merger generally should be determined with reference to each