Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 168

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 168
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Either
party may terminate the August 2024 License Agreement for material breach (subject to a cure period) or insolvency of the other party.
The Company may terminate the August 2024 License Agreement for convenience (in its entirety or on a Licensed Product-by-Licensed Product
basis). In addition, AstraZeneca may terminate the August 2024 License Agreement in certain circumstances, including (but not limited
to) the Company ceasing development of all Licensed Products (subject to certain exceptions for normal pauses or gaps between clinical
studies).

As
a result of the above, the Company will no longer fund the development of AZD1656 or AZD5904 under the terms of the Exclusive Funding
Agreement, dated March 26, 2021 with St George Street Capital (the “Funding Agreement”). In this regard, the Company previously
entered into a deed of amendment amending such Funding Agreement. The parties agreed that the project funding provisions of such Funding
Agreement whereby the Company had the right to fund a project or refer other parties to St George Street Capital, were amended to provide
that St George Street Capital must still include the Company in any project funding opportunities and requests but may now seek other
third-parties to fund projects in addition to the Company. In November and December 2024, the Company received a letter from St George Street Capital and formal complaints
filed with the Intellectual Property Office claiming the Company was not the sole owner of the AZD 1656 co-crystal patent. See note 15
for additional details on the claim.

SARBORG
Service Agreement

On
December 12, 2024, the Company entered into a Services Agreement (the “Sarborg Service Agreement”) with SARBORG Limited
(“Sarborg”), a Cayman Islands company and related party of the Company. See Note 16 for further reference to the
relationship between the Company and Sarborg. Under the terms of the Sarborg Service Agreement, Sarborg will provide algorithmic and
cybernetic technology services to Conduit, including the development of decision-support tools and advanced cybernetic systems
tailored to enhance Conduit’s decision-making processes and maximize the value of its pharmaceutical asset
portfolio.

    F-25

Sarborg
will perform the services to Conduit comprised of three phases: the Initial Phase (0-24 weeks) focuses on establishing a foundation for
collaboration and aligning Sarborg’s services with Con