Company: CDT
Filing Date: 2025-02-14
Form Type: 424B3
Source: 0001493152-25-006960
Chunk: 17

Company: CDT Equity Inc.
Filing Date: 2025-02-14
Form: 424B3
Chunk 17
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 significant amount of our outstanding Common Stock. This concentration of ownership may have an adverse effect on us, including but not limited to, the effect of delaying or preventing a change in control, influencing the vote received on corporate actions that are submitted to our stockholders for approval and might adversely affect the market price of our Common Stock.

The Nirland Debt Agreements provide Nirland with liens on substantially all of our assets, including our intellectual property, and contain financial covenants and other restrictions on our actions, which may cause significant risks to our stockholders and may impact our ability to pursue certain transactions and operate our business.

On August 6, 2024, the Company entered into a Senior Secured Promissory Note (the “August 2024 Senior Secured Promissory Note”) and a Security Agreement (the “Security Agreement”, and collectively with the August 2024 Senior Secured Promissory Note, the “Nirland Debt Agreements”) with Nirland Limited (“Nirland”), pursuant to which the Company issued and sold to Nirland the August 2024 Senior Secured Promissory Note in the original principal amount of $2,650,000, inclusive of a $500,000 original issuance discount.

Pursuant to terms of the Nirland Debt Agreements, of which the Company and Nirland amended the Nirland Debt Agreements (the “Debt Amendment”), we have granted liens on substantially all of our assets, including our intellectual property, as collateral, and have agreed to significant covenants, including covenants that materially limit our ability to take certain actions, including our ability to pay dividends, make certain investments and other payments, incur additional indebtedness, encumber and dispose of assets and customary events of default, including failure to pay amounts due, breaches of covenants and warranties, material adverse effect events, certain cross defaults and judgements and insolvency.

A failure to comply with the covenants and other provisions of these agreements, including any failure to make a payment when required, would generally result in events of default under such instruments. If we are unable to make payment on our outstanding debt when due, the secured lender may foreclose on and sell the assets securing such indebtedness, which includes substantially all of our property, to satisfy our payment obligations, which could prevent us from accessing those assets for our business and conducting our business as planned. Our business, financial condition, prospects and results of operations could be materially adversely affected as a result of any of these