Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 397

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 3
Chunk 397
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    circumstances of the particular transaction

The
audit committee may approve the related party transaction only if the audit committee determines in good faith that, under all of the
circumstances, the transaction is in the best interests of the Company and its stockholders.

Founder
Shares

On
November 16, 2021, the Sponsor, Murphy Canyon Acquisition Sponsor LLC, previously an affiliate of MURF, purchased an aggregate of 43,125
shares of Common Stock for the aggregate price of $25,000 (the “Founder Shares”). The Founder Shares included an aggregate
of up to 7,500 shares subject to forfeiture by the Sponsor to the extent that the underwriters’ over-allotment was not exercised
in full or in part, or 10,062 shares if the underwriters’ over-allotment was exercised in full, so that the Sponsor would collectively
own 20% of the Company’s issued and outstanding shares after the IPO (assuming that, in the IPO, the Sponsor only purchased Class
A common stock consisting of (i) the Founder Shares and (ii) the 7,540 shares of Class A common stock included in the units purchased
by the Sponsor in connection with the IPO (together, the “Private Shares”). As a result of the underwriters’ election
to exercise their over-allotment option, on January 26, 2022, the Sponsor surrendered and forfeited 10,062 Founder Shares. Following
such forfeiture, the Sponsor held 33,062 Founder Shares.

The
Sponsor agreed, subject to certain limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to
occur of: (A) six months after the completion of our initial business combination, and (B) subsequent to the initial business combination
if we complete a liquidation, merger, stock exchange or other similar transaction that results in all of our public stockholders having
the right to exchange their public shares for cash, securities or other property. Notwithstanding the foregoing, the Sponsor shall have
the right to transfer its ownership in the Founder Shares at any time to the extent that it determines, in good faith, that such transfer
is necessary to ensure that it and/or any of its parents, subsidiaries or affiliates are in compliance with the Investment Company Act
of 1940. 

Private
Units

Contemporaneously
with the closing of the IPO and the exercise of the overallotment option, the Sponsor purchased an