Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 440

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 440
---
./Alliance Global Partners (“A.G.P.”), whom acted as a financial advisor to both MURF
    and Conduit, was due to receive (i) a cash fee of $6.5 million, 13,000 shares of Common Stock and warrants to purchase 540 shares
    of Common Stock at an exercise price of $1,100 per share pursuant to its engagement agreement with Conduit entered into on August
    2, 2022 and (ii) $4.6 million of deferred underwriting fees as a result of its engagement for MURF’s initial public offering.
    Upon closing of the Merger, A.G.P. received a cash payment of $5.6 million, 13,000 shares of Common Stock, and 540 warrants to purchase
    540 shares of Common Stock. The remaining $5.7 million of cash payments due to A.G.P upon closing of the Merger was deferred and
    to be paid on or before March 21, 2025, with annual interest of 5.5%. The remaining cash payments due, which were directly attributable
    to the Merger, were accounted for as a liability with an offset to additional paid-in capital in accordance with SAB Topic 5.A on
    the Company’s consolidated balance sheet. See Note 7 for discussion of amendment of the note that took place during the year ended December 31, 2024.

    ●
    In
    connection with the Merger, MURF entered into subscription agreements (the “Subscription Agreements”) with certain accredited
    investors (the “PIPE Investors”) for an aggregate of 20,000 units, with each unit consisting of one share of Company
    common stock (the “PIPE Shares”), together with one warrant exercisable into one share of Company common stock (the “PIPE
    Warrants”), at a purchase price of $1,000 per unit, for an aggregate purchase price of $20,000,000 (the “PIPE Financing”).
    Upon the closing of the PIPE Financing (which closed in connection with the closing of the Merger), the Company received $20.0 million
    in cash from the PIPE Financing, which was used to settle related party promissory notes issued by MURF to the MURF Sponsor and an
    affiliate of the MURF Sponsor as well as transaction costs.

    ●
    The
    proceeds received by the Company from the Merger and