Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 213

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 213
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0.4 million reduced by accumulated amortization during the nine months ended September 30, 2024 of $0.3 million, under its subscription agreement with Polar Multi -StrategyMaster Fund (“Polar”). This agreement stipulates the repayment to Polar of its Capital Contribution in cash or shares. This reflects a cash repayment of the Capital Contribution. f)Reflects the payment of Emerald’s deferred advisory fee due at the closing of the Business Combination. g)Reflects the accrual of Emerald and Fold transaction costs of $12.5 million, expected to be incurred related to the closing of the Business Combination. Transaction costs include direct and incremental costs, such as legal, third party advisory, investment banking, and other miscellaneous fees. Transaction costs previously incurred that are not direct and incremental to the transaction have been included within the historical statement of operations of Emerald and Fold. h)Reflects the gross cash proceeds from the December 2024 Initial Investor Financing of $20.0million from the Investor, bifurcated between convertible notes, net and additional paid in capital based on the estimated relative fair value of the instruments, net of the debt discount of $1.0million and estimated issuance costs accrued for and paid in conjunction with the transaction, totaling $1.6million. Additionally, assumes the exercise of 500,000 December 2024 Series B Warrant Shares for a nominal exercise price of $0.001 per share. Note that the estimated fair value of the warrants was calculated under a Black -Scholesmodel utilizing the enterprise valuation of Fold’s common shares as of September30, 2024. The additional pro forma adjustment assuming 25% redemptions: i)Reflects $13.1 million withdrawal of funds from the trust account to fund the redemption of 1.2 million public shares of Emerald at approximately $11.02 per share, calculated as 25% of the Class A common shares subject to possible redemption. Note that clause Section 8.1(f) to the Merger Agreement requires remaining net tangible assets of $5.0 million of New Fold which limits the maximum redemption scenario to approximately 75% of redeemable Class A common shares. The additional pro forma adjustment assuming maximum redemptions: x)Reflects $39.4 million withdrawal of funds from the Trust Account to fund the redemption of 3.6 million public shares of Emerald at approximately $11.02 per share, with remaining net tangible assets of $5.0 million as required by Section 8.