Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 339

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 339
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common stock may fall below the $18.00 trigger price as well as the $11.50 warrant exercise price after the redemption notice is issued.

If we call the warrants
for redemption as described above, our management will have the option to require all holders that wish to exercise warrants to do so
on a “cashless basis.” In such event, each holder would pay the exercise price by surrendering the warrants for that
number of shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock
underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value”
(defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale
price of the shares of common stock for the five trading days ending on the third trading day prior to the date on which the
notice of redemption is sent to the holders of warrants.

Our management’s ability to require
holders of our warrants to exercise such warrants on a cashless basis will cause holders to receive fewer shares of common stock upon
their exercise of the warrants than they would have received had they been able to exercise their warrants for cash.

If we call our public warrants
for redemption after the redemption criteria have been satisfied, our management will have the option to require any holder that wishes
to exercise his or her warrant (including any private warrants included in the private placement units) to do so on a “cashless
basis.” If our management chooses to require holders to exercise their warrants on a cashless basis, the number of shares of
common stock received by a holder upon exercise will be fewer than it would have been had such holder exercised his warrant for cash.
This will have the effect of reducing the potential “upside” of the holder’s investment in our company.

If we do not file and maintain a current
and effective prospectus relating to the common stock issuable upon exercise of the warrants, holders will only be able to exercise such
warrants on a “cashless basis.”

If we do not file and maintain
a current and effective prospectus relating to the common stock issuable upon exercise of the warrants at the time that holders wish
to exercise such warrants, they will only be able to exercise them on a “cashless basis” provided that an exemption
from registration is available. As a result, the number of shares of common stock that holders will receive