Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 185

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 185
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 of residence of the holder of the warrants.

No warrants will be exercisable
and we will not be obligated to issue shares of common stock unless the shares of common stock issuable upon such exercise have been
registered or qualified or deemed to be exempt under the securities laws of the state of residence of the holder of the warrants. If
the shares of common stock issuable upon exercise of the warrants are not qualified or exempt from qualification in the jurisdictions
in which the holders of the warrants reside, the warrants may be deprived of any value, the market for the warrants may be limited and
they may expire worthless if they cannot be sold.

Our warrants and founder shares may have
an adverse effect on the market price of shares of our common stock and make it more difficult to effectuate our initial business combination.

In a private placement in
connection with our IPO, our sponsor purchased 265,000 private placement units, each containing one share of our common stock, one warrant
exercisable to purchase one share of our common stock at a price of $11.50 per share, subject to adjustment, and one-eight of a
right. Our initial stockholder, our sponsor, currently holds 2,565,000 shares of our common stock. In addition, if our sponsor,
an affiliate of our sponsor or certain of our directors and officers make any working capital loans, up to $1,500,000 of such loans may
be converted into units, at the price of $10.00 per unit at the option of the lender. Such units would be identical to the private placement
units. To the extent we issue shares of our common stock to effectuate a business combination, the potential for the issuance of a substantial
number of additional shares of our common stock upon exercise of these warrants or conversion rights could make us a less attractive
acquisition vehicle to a target business. Any such issuance will increase the number of issued and outstanding shares of our common stock
and reduce the value of the shares of our common stock issued to complete the business combination. Therefore, our warrants and founder
shares may make it more difficult to effectuate a business combination or increase the cost of acquiring the target business.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 1C. CYBERSECURITY

Risk Management and Strategy

Although, as a blank check
company, we do not have any operations, we are nonetheless subject to the risk of cybersecurity incidents. Among other things, the investments