Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 281

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 281
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 redeemed or (ii) all of the Emerald Public Shares actually owned by you are redeemed and you are eligible to waive, and do waive, the attribution of shares owned by certain family members and you do not constructively own any other shares. The redemption of Emerald Public Shares will not be essentially equivalent to a dividend if your redemption results in a “meaningful reduction” of your proportionate interest in Emerald. Whether the redemption will 167 result in a meaningful reduction in your proportionate interest in Emerald will depend on the particular facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest of a small minority stockholder in a publicly held corporation who exercises no control over its corporate affairs may constitute such a “meaningful reduction.” In order to meet the “substantially disproportionate” test, the percentage of outstanding Emerald Public Shares actually and constructively owned by you immediately following the redemptions (by you and other holders of Emerald Public Shares) of the Emerald Public Shares must, among other requirements, be less than 80% of the percentage of the outstanding Emerald Public Shares actually and constructively owned by you immediately before such redemptions. You are urged to consult with your tax advisor as to the tax considerations of a redemption. If none of the foregoing tests are satisfied, then the redemption proceeds will be treated as a corporate distribution and the tax effects will be as described below under “ U.S. Holder — Redemption of Emerald Public Shares Treated as Distributions” or “ Non -U .S. Holder — Redemption of Emerald Public Shares Treated as Distributions,” as applicable. After the application of those rules, any remaining tax basis you have in the redeemed Emerald Public Shares will be added to your adjusted tax basis in your remaining Emerald Public Shares, or, if you have none, to your adjusted tax basis in Public Warrants held by you or possibly in other shares constructively owned by you. If you hold different blocks of Emerald Public Shares (generally, Emerald Public Shares purchased or acquired on different dates or at different prices), you are urged to consult your tax advisors to determine the adjusted tax basis and holding period of the Emerald Public Shares redeemed. All holders of Emerald Public Shares are urged to consult their tax advisors with respect to the tax considerations of a redemption of Emerald Public Shares in their particular circumstances, including tax return reporting requirements, the applicability and effect of the alternative minimum tax, any federal tax laws other than those pertaining to income tax (including estate and gift tax laws), and