Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 816

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9B
Chunk 816
---
i)
provide for the conversion of the August 2024 Nirland Note into shares of Common Stock, at Nirland’s discretion, in a multiple
of any unpaid amounts, if not otherwise previously paid, pursuant to the conversion rate contained therein, (ii) remove Nirland’s
Mandatory Prepayment Right, and (iii) remove Nirland’s right of first refusal to participate in any future equity or debt offerings
of the Company. The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to shall be determined
by dividing (x) such conversion amount by (y) the conversion price. Conversion amount means two and one quarter times the sum of (x)
portion of the principal to be converted, redeemed or otherwise with respect to which this determination is being made and (y) all accrued
and unpaid interest with respect to such portion of the principal amount, if any. Conversion price means, as of any conversion date or
other date of determination, $10, subject to adjustment as provided within the amended agreement.

October 2024 Nirland Note

On October 28, 2024, the Company issued a promissory note (the “October
2024 Nirland Note”) to Nirland, a related party, in the original principal amount of $600,000 in exchange for funds in such amount.
In connection with the October 2024 Nirland Note, the Company paid Nirland a 1% arrangement fee. The October 2024 Nirland Note bears interest
at a rate of 12% per annum, is due and payable semi-annually in arrears, and matures on October 31, 2025. Refer to Note 8 for additional
details.

Sarborg Agreement

On December 12, 2024, the Company
entered into the Sarborg Agreement with Sarborg. Under the terms of the Sarborg 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.

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 Conduit’s strategic goals; the Development Phase (24-36 weeks) involves building technological
infrastructure, including dashboards and predictive