Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 278

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 278
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 it
difficult for us to enter into a business combination with a target.

We may seek to enter into a
business combination transaction agreement with a prospective target that requires as a closing condition that we have a minimum net worth
or a certain amount of cash. If too many public stockholders exercise their redemption rights, we would not be able to meet such closing
condition and, as a result, would not be able to proceed with the business combination. The amount of the deferred underwriting discounts
payable to the underwriters will not be adjusted for any shares that are redeemed in connection with a business combination and such amount
of deferred underwriting discounts is not available for us to use as consideration in an initial business combination. If we are able
to consummate an initial business combination, the per-share value of shares held by non-redeeming stockholders will reflect
our obligation to pay and the payment of the deferred underwriting discounts. Consequently, if accepting all properly submitted redemption
requests would cause us to be unable to satisfy a closing condition as described above, unless the condition was waived, we would not
proceed with such redemption and the related business combination and may instead search for an alternate business combination. Prospective
targets will be aware of these risks and, thus, may be reluctant to enter into a business combination transaction with us.

The ability of our public stockholders to
exercise redemption rights with respect to a large number of our shares may not allow us to complete the most desirable business combination
or optimize our capital structure.

At the time we enter into an
agreement for our initial business combination, we will not know how many stockholders may exercise their redemption rights and, therefore,
we will need to structure the transaction based on our expectations as to the number of shares that will be submitted for redemption.
If our initial business combination agreement requires us to use a portion of the cash in the trust account to pay the purchase price,
or requires us to have a minimum amount of cash at closing, we will need to reserve a portion of the cash in the trust account to meet
such requirements, or arrange for third-party financing. In addition, if a larger number of shares is submitted for redemption than
we initially expected, we may need to restructure the transaction to reserve a greater portion of the cash in the trust account or arrange
for third-party financing. Raising additional third-party financing may involve dilutive equity issuances or the incurrence of indebtedness
at higher than desirable