Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 172

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 172
---
 more stringent rules and possibly result in a reduced level of trading
activity in the secondary trading market for our securities;

●a limited amount of news and analyst coverage; and

●a decreased ability to issue additional securities or obtain
additional financing in the future.

The National Securities Markets
Improvement Act of 1996, which is a federal statute, prevents or preempts the states from regulating the sale of certain securities,
which are referred to as “covered securities.” Because our units, common stock, warrants and rights are listed on Nasdaq,
our units, shares of our common stock, warrants and rights qualify as covered securities under such statute. Although the states are preempted
from regulating the sale of covered securities, the federal statute does allow the states to investigate companies if there is a suspicion
of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular
case. While we are not aware of a state having used these powers to prohibit or restrict the sale of securities issued by special purpose
acquisition companies, certain state securities regulators view blank check companies unfavorably and might use these powers, or threaten
to use these powers, to hinder the sale of securities of blank check companies in their states. Further, if we were no longer listed on
Nasdaq, our securities would not qualify as covered securities under such statute and we would be subject to regulation in each state
in which we offer our securities.

53

The normal regulatory protections for blank check companies will
not apply to your investment in this company.

Under the U.S. securities laws,
our company has characteristics of a “blank check company” because our “business plan is to engage in a merger
or acquisition with an unidentified company or companies, or other entity or person,” and Rule 419 as promulgated under the
Securities Act governs such offerings and provides an exclusion for which we qualify because Exchange Act Rule 3a51-1(a)(2) excludes from
the definition of “penny stock” a security that is registered, or approved for registration upon notice of issuance,
on a national securities exchange, or is listed, or approved for listing upon notice of issuance on, an automated quotation system sponsored
by a registered national securities association, that has established initial listing standards that meet or exceed the criteria set forth
in the Exchange Rule. Therefore, because our securities are listed on the Nasdaq Global Market, the Company can therefore rely on the