Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 184

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 184
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 basis will cause holders to receive fewer shares of common stock upon
their exercise of the warrants than they would have received had they been able to exercise their warrants for cash.

If we call our public warrants
for redemption after the redemption criteria have been satisfied, our management will have the option to require any holder that wishes
to exercise his or her warrant (including any private warrants included in the private placement units) to do so on a “cashless
basis.” If our management chooses to require holders to exercise their warrants on a cashless basis, the number of shares of
common stock received by a holder upon exercise will be fewer than it would have been had such holder exercised his warrant for cash.
This will have the effect of reducing the potential “upside” of the holder’s investment in our company.

If we do not file and maintain a current
and effective prospectus relating to the common stock issuable upon exercise of the warrants, holders will only be able to exercise such
warrants on a “cashless basis.”

If we do not file and maintain
a current and effective prospectus relating to the common stock issuable upon exercise of the warrants at the time that holders wish
to exercise such warrants, they will only be able to exercise them on a “cashless basis” provided that an exemption
from registration is available. As a result, the number of shares of common stock that holders will receive upon exercise of the warrants
will be fewer than it would have been had such holder exercised his warrant for cash. Further, if an exemption from registration is not
available, holders would not be able to exercise on a cashless basis and would only be able to exercise their warrants for cash if a
current and effective prospectus relating to the common stock issuable upon exercise of the warrants is available. Under the terms of
the warrant agreement, we have agreed to use our best efforts to meet these conditions and to file and maintain a current and effective
prospectus relating to the common stock issuable upon exercise of the warrants until the expiration of the warrants. However, we cannot
assure you that we will be able to do so. If we are unable to do so, the potential “upside” of the holder’s
investment in our company may be reduced or the warrants may expire worthless.

59

An investor will only be able to exercise
a warrant if the issuance of shares of common stock upon such exercise has been registered or qualified or is deemed exempt under the
securities laws of the state