Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 336

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 336
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 fail to have maintained an effective
registration statement covering the shares of common stock issuable upon exercise of the warrants, to exercise such warrants on a “cashless
basis”. We shall provide the Warrant Agent with an opinion of counsel stating that (i) the exercise of the warrants on
a cashless basis is not required to be registered under the Securities Act and (ii) the shares of common stock issued upon such exercise
will be freely tradable under U.S. federal securities laws by anyone who is not an affiliate (as such term is defined in Rule 144
under the Act) of the Company and, accordingly, will not be required to bear a restrictive legend.

The grant of registration rights to our
initial stockholders and their respective permitted transferees may make it more difficult to complete our initial business combination,
and the future exercise of such rights may adversely affect the market price of shares of our common stock.

Additionally, pursuant to
a registration rights agreement, the Company shall use its best efforts to file a registration statement within 30 days of our initial
business combination, for our initial stockholders and their respective permitted transferees. In addition, our initial stockholders
and their respective permitted transferees can demand that we register the resale of their founder shares. In addition, our sponsor and
its permitted transferees can demand that we register the resale of the shares of common stock included in the private placement units
and the shares of our common stock issuable upon exercise of the warrants included in the private placement units, and holders of units
that may be issued upon conversion of working capital loans may demand that we register the resale of the securities included in such
units or the shares of our common stock issuable upon exercise of such warrants. We will bear the cost of registering these securities.
The registration and availability of such a significant number of securities for trading in the public market may have an adverse effect
on the market price of shares of our common stock. In addition, the existence of the registration rights may make our initial business
combination more costly or difficult to conclude. This is because the stockholders of the target business may increase the equity stake
they seek in the combined entity or ask for more cash consideration to offset the negative impact on the market price of shares of our
common stock that is expected when the shares of common stock owned by our initial stockholders or their permitted transferees, our private
placement units or units issued in connection with working capital loans are