Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 154

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 154
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founder shares are entitled to registration rights. If we submit our initial business combination to our public stockholders for
a vote, our initial stockholders have agreed (and their respective permitted transferees will agree), pursuant to the terms of a letter
agreement entered into with us, to vote their founder shares and any public shares held by them purchased during or after our IPO in favor
of our initial business combination. While we do not expect our board of directors to approve any amendment to or waiver of the letter
agreement, investment agreements or registration rights agreement prior to our initial business combination, it may be possible that our
board of directors, in exercising its business judgment and subject to its fiduciary duties, chooses to approve one or more amendments
to or waivers of such agreements in connection with the consummation of our initial business combination. Any such amendments or waivers
would not require approval from our stockholders, may result in the completion of our initial business combination that may not otherwise
have been possible, and may have an adverse effect on the value of an investment in our securities.

The personal and financial
interests of our sponsor, directors and officers may influence their motivation in identifying and selecting a target business combination,
completing an initial business combination and influencing the operation of the business following the initial business combination. This
risk may become more acute as the 18-month deadline following the closing of our IPO nears, which is the deadline for the completion
of our initial business combination.

44

The nominal purchase price paid by our sponsor
for the founder shares may result in significant dilution to the implied value of your public shares upon the consummation of our initial
business combination.

We sold units at an offering
price of $10.00 per unit and the amount in our trust account is initially $10.00 per public share, implying an initial value of $10.00
per public share. However, our sponsor paid a nominal aggregate purchase price of $25,000 for the founder shares, or approximately $0.011
per share. As a result, the value of our public shares may be significantly diluted upon the consummation of our initial business combination,
when the founder shares are converted into public shares.

The value of the founder shares following
completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the
trading price of our public shares at such time is substantially less than $10.00 per share