Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 89

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 89
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account.

In the case of an initial business
combination funded with assets other than the trust account assets, our tender offer documents or proxy materials disclosing the business
combination would disclose the terms of the financing and, only if required by law or we decide to do so for business or other reasons,
we would seek stockholder approval of such financing. There are no prohibitions on our ability to raise funds privately or through loans
in connection with our initial business combination. At this time, we are not a party to any arrangement or understanding with any third
party with respect to raising any additional funds through the sale of securities or otherwise.

Selection of a target business and structuring
of our initial business combination

As discussed above, Nasdaq
rules require that our initial business combination must be with one or more operating businesses or assets with a fair market value equal
to at least 80% of the net assets held in the trust account (net of amounts disbursed to management for working capital purposes, if permitted,
and excluding the amount of any deferred underwriting discounts held in trust). We refer to this as the 80% of net assets test. The fair
market value of the target or targets will be determined by our board of directors based upon one or more standards generally accepted
by the financial community, such as discounted cash flow valuation or value of comparable businesses. If our board of directors is not
able independently to determine the fair market value of the target business or businesses, we may obtain an opinion from an independent
investment banking firm, or another independent entity that commonly renders valuation opinions, with respect to the satisfaction of such
criteria. Although we may purchase multiple businesses in related industries in connection with our initial business combination, we do
not currently intend to purchase multiple businesses in unrelated industries in conjunction with our initial business combination, although
there is no assurance that will be the case. Subject to this requirement, our management will have virtually unrestricted flexibility
in identifying and selecting one or more prospective target businesses, although we will not be permitted to effectuate our initial business
combination solely with another blank check company or a similar company with nominal operations.

In any case, we will only complete
an initial business combination if the post-transaction company owns or acquires 50% or more of the issued and outstanding voting
securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register
as an investment company under the Investment Company Act. If less than 100