Company: CSTAF
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027555
Chunk: 229

Company: Constellation Acquisition Corp I
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1A
Chunk 229
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, the holder of such warrant
will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In such event, holders who acquired
their warrants as part of a purchase of units will have paid the full unit purchase price solely for the Class A ordinary shares included
in the units. There may be a circumstance where an exemption from registration exists for holders of our private placement warrants to
exercise their warrants while a corresponding exemption does not exist for holders of the warrants included as part of units sold in the
IPO. In such an instance, affiliates of our Sponsor and their transferees (which may include our team) would be able to exercise their
warrants and sell the ordinary shares underlying their warrants while holders of our public warrants would not be able to exercise their
warrants and sell the underlying ordinary shares. If and when the warrants become redeemable by us, we may exercise our redemption right
even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws.

Our ability to require holders of our warrants to exercise
such warrants on a cashless basis after we call the warrants for redemption or if there is no effective registration statement covering
the Class A ordinary shares issuable upon exercise of these warrants will cause holders to receive fewer Class A ordinary shares upon
their exercise of the warrants than they would have received had they been able to pay the exercise price of their warrants in cash.

If we call the warrants for redemption for cash, we will have the option,
in our sole discretion, to require all holders that wish to exercise warrants to do so on a cashless basis. If we choose to require holders
to exercise their warrants on a cashless basis or if holders elect to do so when there is no effective registration statement, the number
of Class A ordinary shares received by a holder upon exercise will be fewer than it would have been had such holder exercised his or her
warrant for cash.

For example, if the holder is exercising 875 public warrants at $11.50
per share through a cashless exercise when the Class A ordinary shares have a fair market value of $17.50 per share, then upon the cashless
exercise, the holder will receive 300 Class A ordinary shares. The holder would have received 875 Class A ordinary shares if the exercise
price was paid in cash. This will have the effect of reducing the potential “upside” of the holder’s investment in our
company because the warrant holder will hold