Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 297

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 297
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 the liquidation provision in the Existing Charter and retains the default of perpetual existence under the DGCL.                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Provisions Specific to a Blank Check Company (Proposal 3D) |     | Under the Existing Charter, Article IX sets forth various provisions related to Emerald’s operations as a blank check company prior to the consummation of an initial business combination.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |     | The Proposed Charter deletes the provisions previously included as Article IX in the Existing Charter in their entirety because, upon consummation of the Business Combination, Emerald will cease to be a blank check company. In addition, the provisions requiring that the proceeds from the IPO be held in the Trust Account until a business combination or liquidation of Emerald and the terms governing Emerald’s consummation of a proposed business combination will not be applicable following consummation of the Business Combination and thus will be deleted. |

Reasons for the Amendments to Emerald’s Existing Charter In the judgment of the Emerald Board, the Proposed Charter is necessary to address the needs of New Fold following the Closing. In particular: •The greater number of authorized shares (Proposal 3A) of capital stock is desirable for New Fold to have sufficient shares to complete the Business Combination. Additionally, the Emerald Board believes that it is important for New Fold to have available for issuance a number of authorized shares sufficient to support its growth and to provide flexibility for future corporate needs (including, if needed, as part of financing for future growth acquisitions). The shares would be issuable for any proper corporate purpose, including future acquisitions, capital raising transactions consisting of equity or convertible debt, stock dividends or issuances under current and any future equity incentive plans, pursuant to

178 which New Fold may provide equity incentives to employees, officers and directors. The Emerald Board believes that these additional shares will provide New Fold with needed flexibility to issue shares in the future in a timely manner and under circumstances New Fold considers favorable without incurring the risk, delay and potential expense incident to obtaining stockholder approval for a particular issuance. •The supermajority voting provisions with respect to altering, amending, or repealing the Proposed Bylaws (Proposal 3B), ARTICLE IV, ARTICLE V, ARTICLE VI, ARTICLE VII, ARTICLE VIII, ARTICLE IX and ARTICLE X of the Proposed Charter (Proposal 3C) are desirable to enhance the continuity and stability of the New Fold Board. The supermajority voting requirements are appropriate at this time to protect all stockholders against the potential self -interestedactions by one or a few