Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 181

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 181
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 litigation or stockholder activism, which could cause New Fold to incur significant expense, hinder execution of business and growth strategy and impact its stock price. In the past, following periods of volatility in the market price of a company’s securities, securities class action litigation has often been brought against that company. Stockholder activism, which could take many forms or arise in a variety of situations, has been increasing recently. Volatility in the stock price of New Fold Common Stock or other reasons may in the future cause it to become the target of securities litigation or stockholder activism. Securities litigation and stockholder activism, including potential proxy contests, could 97 result in substantial costs and divert management’s and the board of directors’ attention and resources from New Fold’s business. Additionally, such securities litigation and stockholder activism could give rise to perceived uncertainties as to New Fold’s future, adversely affect its relationships with service providers and make it more difficult to attract and retain qualified personnel. Also, New Fold may be required to incur significant legal fees and other expenses related to any securities litigation and activist stockholder matters. Further, its stock price could be subject to significant fluctuation or otherwise be adversely affected by the events, risks and uncertainties of any securities litigation and stockholder activism. Risks Related to Emerald’s Business and the Business Combination Unless the context otherwise requires, all references to “we,” “us,” or “our” in this subsection refer to Emerald. The Business Combination and New Fold becoming a publicly listed company as a result of the Merger differs significantly from an underwritten initial public offering. There are risks to our stockholders who are not affiliates of the Sponsor of becoming stockholders of New Fold through the Business Combination rather than acquiring securities of Fold directly in an underwritten public offering, including no independent due diligence review by an underwriter and conflicts of interest of the Sponsor. Because there is no independent third -partyunderwriter involved in the Business Combination or the issuance of securities in connection therewith, investors will not receive the benefit of any outside independent review of Emerald’s or Fold’s respective finances and operations. Underwritten public offerings of securities conducted by a licensed broker -dealerare subjected to a due diligence review by the underwriter or dealer manager to satisfy statutory duties under the Securities Act, the rules of Financial Industry Regulatory Authority, Inc. (FINRA) and the national securities exchange where such securities are listed. Additionally, underwriters or dealer -managersconducting such public offerings are subject to liability for any material misstatements or omissions in a registration statement filed