Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 8

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 8
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 such repayment. If such funds are insufficient to repay the October Note, the unpaid amounts would be forgiven. No portion of the amounts outstanding under the October Note may be converted into units or shares. On October25, 2024, Emerald borrowed $65,000 under the October Note. On October31, 2024, Emerald issued a promissory note (the “Tax Note”) to Frontier. Pursuant to the Tax Note, Frontier agreed to loan Emerald an aggregate principal amount of $973,116.44, which was used to satisfy Emerald’s excise tax liability. The Tax Note is non -interestbearing and all outstanding amounts under the Tax Note will be due on the date on which Emerald consummates a business combination. If Emerald does not consummate a business combination, Emerald may use a portion of any funds held outside the Trust Account to repay the Tax Note; however, no proceeds from the Trust Account may be used for such repayment. If such funds are insufficient to repay the Tax Note, the unpaid amounts would be forgiven. No portion of the amounts outstanding under the Tax Note may be converted into units or shares. On October31, 2024, Emerald borrowed the full amount under the Tax Note. On July 24, 2024, the Sponsor entered into a Sponsor Share Restriction Agreement with Emerald (the “Sponsor Share Restriction Agreement”). Pursuant to the Sponsor Share Restriction Agreement, at the Closing, (i) the Private Placement Warrants, all of which are held by the Sponsor, will be forfeited and cancelled, and (ii) approximately 3.3 million of the Sponsors’ founder shares allocated to certain third party investors not affiliated with the Sponsors or the Company will not be subject to transfer restrictions, and approximately 5.3 million of the Sponsors’ founder shares will be made subject to achieving certain price thresholds for the Company’s common stock for 20 out of any 30 consecutive trading days; provided, that up to 1,000,000 of the Sponsors’ founder shares shall be forfeited in the event that that less than $50 million is raised by the Company or Fold from the date of the Merger Agreement for a period of two (2) years from Closing; and provided further, that: •one -thirdof the subject founder shares will lapse on the six -monthanniversary of the Closing; •one -thirdof the subject founder shares will lapse on the first or second anniversary of the Closing; and •one -thirdof