Company: MKDWW
Filing Date: 2025-04-03
Form Type: 20-F
Source: 0001641172-25-002607
Chunk: 101

Company: MKDWELL Tech Inc.
Filing Date: 2025-04-03
Form: 20-F
Item: Item 7
Chunk 101
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D and Cetus Capital in July 2024, Cetus Capital was a reporting company and a blank check company listed
on Nasdaq.

On
June 10, 2022, Cetus Sponsor LLC (the “ Sponsor”) subscribed to purchase 1,725,000 founder shares for an aggregate purchase
price of $25,000, or approximately $0.014 per share. On August 31, 2022, the Sponsor converted all of its founder shares, which were
originally issued as shares of Class B common stock, into an equal number of shares of Class A common stock on a one-for-one basis. On
December 30, 2022, the Sponsor surrendered to Cetus Capital for cancellation 287,500 shares of Class A common stock for no consideration,
resulting in the Sponsor owning 1,437,500 shares of Class A common stock of Cetus Capital. The number of founder shares issued was determined
based on the expectation that such founder shares would represent 20% of the outstanding shares upon completion of the IPO of Cetus Capital
(excluding the Private Units and underlying securities and issuance of shares to D. Boral Capital LLC (formerly EF Hutton LLC)). Up to
187,500 founder shares held by the Sponsor were subject to forfeiture by the Sponsor depending on the extent to which the underwriters’
over-allotment option was exercised. The founder shares may not, subject to certain limited exceptions, be transferred, assigned or sold
by the holder.

The
Sponsor purchased an aggregate of 286,875 Private Units at a price of $10.00 per unit for an aggregate purchase price of $2,868,750 in
connection with the closing of the IPO of Cetus Capital. There were no redemption rights or liquidating distributions from the trust
account with respect to the founder shares or Private Units.

Prior
to the closing of the IPO of Cetus Capital, the Sponsor agreed to loan to Cetus Capital, pursuant to a promissory note, up to $300,000
to be used for a portion of the expenses of the IPO of Cetus Capital. These loans were non-interest bearing, unsecured and are due at
the earlier of May 31, 2023 or the closing of the IPO. The promissory note was repaid by converting it to Private Units in connection
with the IPO of Cetus Capital at $10 per unit.

Simultaneously
with the closing of the IPO of Cetus