Company: NOEMW
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001213900-25-042720
Chunk: 86

Company: CO2 Energy Transition Corp.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 entered into a convertible promissory
note dated March 31, 2025 (the “Working Capital Note”). Pursuant to the Working Capital Note, we may request, and in the sole
discretion of the sponsor, the sponsor may loan the Company, loan drawdowns of up to an aggregate $1,500,000 in principal (“Working
Capital Loan”) from time to time, less $11,731 which was advanced prior to the execution of the Working Capital Note, and included
as outstanding thereunder, with such amounts to be used for working capital.

Amounts owed under the Working
Capital Note do not accrue interest and are payable on the earlier of: (i) the effective date of the consummation of the Company’s
initial merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses
or entities (the “Business Combination”); or (ii) the date that the winding up of the Company is effective (such date, as
applicable, the “Maturity Date”), unless accelerated upon the occurrence of an Event of Default (as defined in the Working
Capital Note).

Amounts outstanding under
the Working Capital Note, are convertible, at the option of the sponsor, into units of the Company (“Working Capital Note Units”),
at a conversion price of $10.00 per Working Capital Note Unit, with each unit consisting of one share of Company common stock, one warrant,
and one right, with each warrant entitling the holder thereof to purchase one share of common stock at $11.50 per share, subject to adjustment
as provided in the Company’s Registration Statement on Form S-1 filed in connection with its IPO, and each eight rights entitling
the holder to receive one share of common stock upon completion of the Business Combination. The Working Capital Note Units will be identical
to the private placement units issued to the Sponsor at the time of the Company’s IPO.

We do not believe we will
need to raise additional funds in order to meet the expenditures required for operating our business, as we expect any required funds
to be provided by our sponsor in the form of additional Working Capital Loans. However, if our estimate of the costs of identifying a
target business, undertaking in-depth due diligence and negotiating an initial business combination are less than the actual amount necessary
to do so, we may have insufficient funds available to operate our business prior to our initial business combination. Moreover, we may
need to