Company: CDT
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001641172-25-006259
Chunk: 19

Company: CDT Equity Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 19
---
 will be rounded down to the nearest whole share of the Common Stock,
in order to comply with the requirements of Sections 409A and 424 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).

By approving Proposal 1, stockholders
will be approving multiple Reverse Stock Split Charter Amendments providing for the combination of a whole number of shares of
the Company’s Common Stock not less than 1-for-2 and not greater than 1-for-100 into one share of the Company’s Common Stock,
and in the aggregate not more than 1-for-250, inclusive, with any such future amendment setting forth the actual ratio to be determined
by our Board. Furthermore, by adoption and approval of this proposal, the stockholders will be deemed to have adopted and approved one
or more amendments to effect a Reverse Stock Split at one or more of the ratios between and including 1-for-2 and 1-for-100, and in the
aggregate not more than 1-for-250, inclusive.

Potential Anti-Takeover Effect

Although the increased proportion of unissued
authorized shares to issued shares from any Reverse Stock Split could, under certain circumstances, have an anti-takeover effect, for
example, by permitting issuances that would dilute the stock ownership of a person seeking to effect a change in the composition of the
Board or contemplating a tender offer or other transaction for the combination of the Company with another company, the Reverse Stock
Split Proposal is not being proposed in response to any effort of which the Company is aware to accumulate shares of Common Stock or obtain
control of the Company, nor is it part of a plan by management to recommend a series of similar amendments to the Board and stockholders.
The Board does not currently contemplate recommending the adoption of any other actions that could be construed to affect the ability
of third parties to take over or change control of the Company.

| 12 |

U.S. Federal Income Tax Considerations

The following discussion is a general summary
of certain U.S. federal income tax considerations of the proposed Reverse Stock Split that may be relevant to U.S. holders and non-U.S.
holders (each as defined below) of the Common Stock, but does not purport to be a complete analysis of all potential tax consequences
that may be relevant to such holders. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable
state, local or non-U.S.