Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 776

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7
Chunk 776
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 period commencing once the
Publicly Traded Warrants become exercisable and ending three business days before we send the notice of redemption to the warrant holders.

If
and when the Publicly Traded Warrants become redeemable by Conduit, Conduit may not exercise its redemption right if the issuance of
shares of Common Stock upon exercise of the Publicly Traded Warrants is not exempt from registration or qualification under applicable
state blue sky laws or Conduit are unable to effect such registration or qualification. Conduit will use its best efforts to register
or qualify such shares of Common Stock under the blue sky laws of the state of residence in those states in which the Publicly Traded
Warrants were offered by Conduit in the offering.

If
Conduit calls the Publicly Traded Warrants for redemption as described above, Conduit’s management will have the option to require
any holder that wishes to exercise its Publicly Traded Warrant to do so on a “cashless basis.” In determining whether to
require all holders to exercise their Publicly Traded Warrants on a “cashless basis,” Conduit’s management will consider,
among other factors, Conduit’s cash position, the number of Publicly Traded Warrants that are outstanding and the dilutive effect
on Conduit stockholders of issuing the maximum number of shares of Common Stock issuable upon the exercise of our Publicly Traded Warrants.
If Conduit’s management takes advantage of this option, all holders of Publicly Traded Warrants would pay the exercise price by
surrendering their Publicly Traded 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 Publicly Traded Warrants, multiplied by the difference between the
exercise price of the Publicly Traded Warrants and the “fair market value” (defined below) by (y) the fair market value.
The “fair market value” for this purpose shall mean the average reported last sale price of the Common Stock for the 10 trading
days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of Publicly Traded Warrants.
If Conduit’s management takes advantage of this option, the notice of redemption will contain the information necessary to calculate
the number of shares of Common Stock to be received upon exercise of the Publicly Traded Warrants, including the “fair market value”