Fold, Inc. Announces Up To $30 Million Convertible Note Financing Backed by Bitcoin
Fold Inc has secured a $20 million convertible note financing from ATW Partners, with potential for an additional $10 million upon closing its business combination with FTAC Emerald Acquisition Corp (OTC: FLDD). The initial note is backed by the company's assets, including bitcoin, and will mature three years after Fold becomes public. The note is convertible to common stock at $11.50 per share, above the proposed business combination valuation. ATW Partners received warrants exercisable at $12.50 per share.
The funding will support growth initiatives and product development. The business combination with FTAC Emerald is expected to close in Q1 2025, subject to SEC approvals and stockholder approval.
Fold Inc ha assicurato un finanziamento di $20 milioni tramite un'ordinario convertibile da ATW Partners, con la possibilità di ulteriori $10 milioni al completamento della combinazione aziendale con FTAC Emerald Acquisition Corp (OTC: FLDD). La nota iniziale è garantita dagli attivi dell'azienda, inclusi bitcoin, e scadrà tre anni dopo che Fold diventerà pubblico. La nota è convertibile in azioni ordinarie a $11,50 per azione, sopra la valutazione proposta per la combinazione aziendale. ATW Partners ha ricevuto warrant esercitabili a $12,50 per azione.
Il finanziamento supporterà iniziative di crescita e sviluppo del prodotto. Si prevede che la combinazione aziendale con FTAC Emerald si concluda nel primo trimestre del 2025, soggetta all'approvazione della SEC e degli azionisti.
Fold Inc ha asegurado un financiamiento de $20 millones a través de una nota convertible de ATW Partners, con la posibilidad de obtener $10 millones adicionales al cerrar su combinación de negocios con FTAC Emerald Acquisition Corp (OTC: FLDD). La nota inicial está respaldada por los activos de la empresa, incluyendo bitcoin, y vencerá tres años después de que Fold se vuelva pública. La nota es convertible a acciones comunes a $11.50 por acción, por encima de la valoración propuesta para la combinación de negocios. ATW Partners recibió warrants ejercitables a $12.50 por acción.
La financiación apoyará iniciativas de crecimiento y desarrollo de productos. Se espera que la combinación de negocios con FTAC Emerald se cierre en el primer trimestre de 2025, sujeto a las aprobaciones de la SEC y la aprobación de los accionistas.
폴드 인크는 ATW 파트너로부터 2천만 달러 규모의 전환사채 자금을 확보했으며, FTAC 에메랄드 인수주식회사 (OTC: FLDD)와의 사업 결합이 완료되면 추가로 1천만 달러를 받을 수 있는 가능성이 있습니다. 이 초기 사채는 회사 자산, 비트코인 등을 담보로 하고 있으며, 폴드가 상장된 후 3년 후 만료됩니다. 이 사채는 주당 11.50달러에 보통주로 전환할 수 있으며, 제안된 사업 결합 평가액보다 높습니다. ATW 파트너는 주당 12.50달러에 행사 가능한 워런트를 받았습니다.
이번 자금 조달은 성장 이니셔티브 및 제품 개발을 지원할 것입니다. FTAC 에메랄드와의 사업 결합은 SEC 승인 및 주주 승인을 조건으로 2025년 1분기에 마무리될 것으로 기대됩니다.
Fold Inc a sécurisé un financement sous forme de note convertible de 20 millions de dollars de la part d'ATW Partners, avec la possibilité d'obtenir un montant supplémentaire de 10 millions de dollars lors de la clôture de sa combinaison d'affaires avec FTAC Emerald Acquisition Corp (OTC: FLDD). La note initiale est garantifiée par les actifs de l'entreprise, y compris le bitcoin, et arrivera à maturité trois ans après que Fold sera devenu public. La note peut être convertie en actions ordinaires au prix de 11,50 dollars par action, au-dessus de la valorisation proposée pour la combinaison d'affaires. ATW Partners a également reçu des bons d'achat exerçables à 12,50 dollars par action.
Le financement soutiendra des initiatives de croissance et le développement de produits. La combinaison d'affaires avec FTAC Emerald devrait se terminer au premier trimestre 2025, sous réserve des approbations de la SEC et de l'approbation des actionnaires.
Fold Inc hat eine Finanzierung über 20 Millionen Dollar in Form einer wandelbaren Schuldverschreibung von ATW Partners gesichert, mit der Möglichkeit, bei Abschluss der Unternehmenszusammenlegung mit FTAC Emerald Acquisition Corp (OTC: FLDD) zusätzliche 10 Millionen Dollar zu erhalten. Die ursprüngliche Schuldverschreibung wird durch die Vermögenswerte des Unternehmens, einschließlich Bitcoin, gesichert und läuft drei Jahre nach dem Börsengang von Fold aus. Die Schuldverschreibung kann zu einem Preis von 11,50 Dollar pro Aktie in Stammaktien umgewandelt werden, was über der vorgeschlagenen Unternehmensbewertung liegt. ATW Partners erhielt auch Warrants, die zu 12,50 Dollar pro Aktie ausgeübt werden können.
Die Finanzierung wird Wachstumsinitiativen und Produktentwicklungen unterstützen. Der Abschluss der Unternehmenszusammenlegung mit FTAC Emerald wird für das erste Quartal 2025 erwartet, vorbehaltlich der Genehmigungen durch die SEC und der Zustimmung der Aktionäre.
- Secured $20 million immediate financing with potential for additional $10 million
- Convertible note price of $11.50 represents premium to business combination valuation
- Financing backed by company assets including bitcoin as collateral
- Additional $10 million funding contingent on business combination completion
- Dilutive effect from potential conversion of notes and exercise of warrants
- Business combination still subject to regulatory and shareholder approvals
Innovative financing structure supports proposed business combination with FTAC Emerald Acquisition Corp.
The initial convertible note is secured by the Company’s assets as collateral, including a portion of the Company’s proprietary bitcoin and will mature three years after Fold becomes a public company. The note will be convertible into common stock of the combined company at a fixed conversion price of
“This financing represents a significant milestone for Fold, combining traditional convertible debt structures with digital asset backing in a way that provides both immediate capital and long-term alignment with our shareholders,” said Will Reeves, Chief Executive Officer of Fold. “We are grateful for ATW Partners’ support and confidence in our mission to expand access to premium bitcoin financial services and empower individuals to achieve their dreams, as we work toward completing our business combination and entering the public markets.”
The
The proposed business combination remain subject to customary closing conditions, including Securities and Exchange Commission (“SEC”) regulatory approvals and the approval of FTAC Emerald’s stockholders. The closing of the
Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, is serving as the exclusive financial advisor, capital markets advisor and placement agent to Fold.
On July 24, 2024, FTAC Emerald and Fold announced that it entered into a business combination agreement that is expected to result in the combined company being listed as a public company. The transaction continues to be expected to close in the first quarter of 2025.
About Fold
Founded in 2019, Fold is a leading bitcoin financial services company dedicated to expanding access to bitcoin investment opportunities through premium financial products. By integrating bitcoin into everyday financial services, Fold aims to make the American Dream available to more people. For more information, visit https://foldapp.com/investors.
About FTAC Emerald Acquisition Corp.
FTAC Emerald is a special purpose acquisition company sponsored by Cohen Circle and formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses with a core commitment to providing social, financial, and/or environmental value.
Important Information About the Proposed Business Combination and Where to Find It
This press release relates to a proposed transaction between Fold and FTAC Emerald. This press release does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The parties have filed a registration statement on Form S-4 with the SEC, which includes a document that will serve as a prospectus and proxy statement of FTAC Emerald, referred to as a proxy statement/prospectus. A proxy statement/prospectus will be sent to all FTAC Emerald stockholders when available. FTAC Emerald also will file other documents regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of FTAC Emerald are urged to read the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction.
Investors and security holders will be able to obtain free copies of the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by FTAC Emerald through the website maintained by the SEC at www.sec.gov. Alternatively, these documents, when available, can be obtained free of charge by directing a request to: FTAC Emerald Acquisition Corp., 2929 Arch Street, Suite 1703,
Participants in the Solicitation
Fold and FTAC Emerald and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from FTAC Emerald’s stockholders in connection with the proposed transaction. A list of the names of the directors and executive officers of FTAC Emerald and information regarding their interests in the business combination will be contained in the proxy statement/prospectus when available. You may obtain free copies of these documents as described in the preceding paragraph.
Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of the federal securities laws with respect to the proposed transaction between Fold and FTAC Emerald. Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts regarding Fold’s business, net proceeds from the second tranche of convertible note financing and proposed transaction, potential benefits of the financing and proposed transaction and the potential success of Fold’s market and growth strategies, and expectations related to the terms and timing of the proposed transaction. These statements are based on various assumptions and on the current expectations of FTAC Emerald and Fold’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of FTAC Emerald and Fold. These forward-looking statements are subject to a number of risks and uncertainties, including: (i) the risk that the proposed transaction may not be completed in a timely manner or at all; (ii) the risk that the proposed transaction may not be completed by FTAC Emerald 's business combination deadline and the potential failure to obtain an extension of the business combination deadline; (iii) the failure to satisfy the conditions to the consummation of the proposed transaction, including the approval of the proposed transaction by the stockholders of FTAC Emerald and the receipt of certain governmental and regulatory approvals; (iv) the failure to realize the anticipated benefits of the proposed transaction; (v) the effect of the announcement or pendency of the proposed transaction on Fold’s business relationships, performance, and business generally; (vi) the outcome of any legal proceedings that may be instituted against FTAC Emerald or Fold related to the business combination agreement or the proposed transaction; (vii) the ability to list FTAC Emerald’s securities on the NASDAQ following the proposed transaction; (viii) the ability to address the market opportunity for Fold’s products and services; (ix) the risk that the proposed transaction may not generate the expected net proceeds for the combined company; (x) the ability to implement business plans and other expectations after the completion of the proposed transaction, and identify and realize additional opportunities; (xi) the occurrence of any event, change or other circumstance that could give rise to the termination of the business combination agreement; (xii) the risk of downturns, new entrants and a changing regulatory landscape in the highly competitive industry in which Fold operates; and (xiii) those factors discussed in FTAC Emerald’s filings with the SEC under the headings “Risk Factors,” and other documents of FTAC Emerald filed, or to be filed, with the SEC. If any of these risks materialize or Fold’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that neither FTAC Emerald nor Fold presently know or that FTAC Emerald and Fold currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect FTAC Emerald’s and Fold’s expectations, plans or forecasts of future events and views as of the date of this press release. While FTAC Emerald and Fold may elect to update these forward-looking statements at some point in the future, each specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing FTAC Emerald’s and Fold’s assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241230066557/en/
Investor and Media Contacts
Fold: Fold@icrinc.com
Source: Fold, Inc. and FTAC Emerald Acquisition Corp.
FAQ
What is the size of Fold's convertible note financing from ATW Partners?
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When is Fold's business combination with FTAC Emerald (FLDD) expected to close?
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What are the terms of the warrants issued to ATW Partners in the Fold financing?
