Company: CSTAF
Filing Date: 2025-04-02
Form Type: 10-K
Source: 0001213900-25-027555
Chunk: 64

Company: Constellation Acquisition Corp I
Filing Date: 2025-04-02
Form: 10-K
Item: Item 1
Chunk 64
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held by affiliates of our Sponsor or their permitted transferees.

In addition, we have the ability to redeem the outstanding warrants
at any time after they become exercisable and prior to their expiration, at a price of $0.10 per warrant if, among other things, the Reference
Value equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, rights issuances, subdivisions, reorganizations,
recapitalizations and the like). In such a case, the holders will be able to exercise their warrants prior to redemption for a number
of shares of our Class A ordinary shares determined based on the redemption date and the fair market value of our Class A ordinary shares.
The value received upon exercise of the warrants (1) may be less than the value the holders would have received if they had exercised
their warrants at a later time where the underlying share price is higher and (2) may not compensate the holders for the value of the
warrants, including because the number of ordinary shares received is capped at 0.361 shares of our Class A ordinary shares per warrant
(subject to adjustment) irrespective of the remaining life of the warrants.

35

Our warrants may have an adverse effect on the market price
of our Class A ordinary shares and make it more difficult to effectuate our Business Combination.

We issued public warrants to purchase 10,333,333 of our Class A ordinary
shares as part of the units offered by the IPO and, simultaneously with the closing of the IPO, we issued in a private placement 5,466,667
private placement warrants at $1.50 per warrant. In addition, if the Sponsor makes any working capital loans, it may convert up to $1,500,000
of such loans into up to 1,000,000 private placement warrants, at the price of $1.50 per warrant. To the extent we issue ordinary shares
to effectuate a business transaction, the potential for the issuance of a substantial number of additional Class A ordinary shares upon
exercise of these warrants could make us a less attractive acquisition vehicle to a target business. Such warrants, when exercised, will
increase the number of issued and outstanding Class A ordinary shares and reduce the value of the Class A ordinary shares issued to complete
the business transaction. Therefore, our warrants may make it more difficult to effectuate a business transaction or increase the cost
of acquiring the target business.

Our warrants are accounted for as liabilities and the changes
in value of our