FTAC Emerald Acquisition Corp. Issues Promissory Note to Frontier SPV, LLC

FTAC Emerald Acquisition Corp. (NASDAQ:EMLDU) revealed in a recent 8-K filing with the Securities and Exchange Commission that it had entered into a material definitive agreement on October 25, 2024. According to the Form 8-K, the company issued a promissory note (the “Promissory Note”) to Frontier SPV, LLC, affiliated with FTAC Emerald’s sponsors. This agreement stipulates that the Lender would provide a loan of up to $2,000,000 to FTAC Emerald, with the Promissory Note being non-interest bearing.

The outstanding amounts under the Promissory Note are due on the date of the company’s business combination, referred to as the “Maturity Date.” If the business combination is not realized, FTAC Emerald may utilize a portion of the funds held outside the trust account containing the proceeds from its initial public offering to repay the Promissory Note, but not from the trust account itself. In case the funds are insufficient, any unpaid amounts will be forgiven. The agreement specifies that none of the outstanding amounts under the Promissory Note can be converted into units or shares.

As of the issuance date, FTAC Emerald borrowed $65,000 under the Promissory Note. The agreement’s details were further corroborated under the item 2.03 of the filing, indicating the creation of a direct financial obligation by the company.

The filing also detailed important information regarding a proposed business combination between Fold, Inc. and FTAC Emerald, cautioning investors against unlawful securities trades and highlighting the mandatory filings and proxy documents to be accessed by shareholders before voting on the proposed transaction.

FTAC Emerald advised interested parties to refer to the full details in the filed registration statement and proxy documents regarding the proposed merger. The company’s executives and directors may partake in soliciting proxies from stockholders, with their profiles and interests outlined in forthcoming proxy statement/prospectuses.

Furthermore, the filing contained forward-looking statements related to the anticipated effects and risks inherent in the proposed transaction. FTAC Emerald emphasized that these statements were not guarantees and cautioned against relying excessively on their predictive nature. The company remains poised to update stakeholders on developments, disclaiming any obligation to commit to specific timelines for revisions.

The filing concluded by listing the pertinent exhibit related to the Promissory Note and the interactive data file embedded in the Inline XBRL document.

Investors and stakeholders are urged to stay informed on the evolving status of the business arrangement and exercise due diligence in assessing the potential impacts and outcomes associated with FTAC Emerald Acquisition Corp.’s recent financial agreements.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read FTAC Emerald Acquisition’s 8K filing here.

FTAC Emerald Acquisition Company Profile

FTAC Emerald Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in the clean/renewable energy, water sustainability, agricultural technology, shared economy software, and mobility sectors.