Company: CDT
Filing Date: 2025-08-14
Form Type: 10-Q/A
Source: 0001641172-25-024123
Chunk: 28

Company: CDT Equity Inc.
Filing Date: 2025-08-14
Form: 10-Q/A
Chunk 28
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, at a fixed price of $ 10.00 (or following any reverse splits that may occur in a ratio greater than 10 to 1, the lower of such reverse split price and the market price per share at the time of the conversion date, but in no event less than $ 1.00), subject to adjustment as provided therein and to take into account any future share splits or reverse splits. The Company notes that the reverse split provision in the preceding sentence was tripped, effective January 25, 2025, following the 1-for-100 reverse stock split that occurred on that date. During March 2025, A.G.P and the Company subsequently agreed to amend the conversion price, whereby the A.G.P. Convertible Note is convertible into shares of the Company’s common stock at the lower of the reverse split price and the market price per share at the time of the conversion date.

Per the terms of the
A.G.P. Convertible Note, conversion could not occur prior to the Company having sufficiently authorized shares of common stock to
permit the entire conversion of the convertible promissory note. In addition, the conversion of the convertible promissory note
could also not occur prior to receipt of stockholder approval to provide for such conversion of the convertible promissory note, and
subsequent issuance of the Company’s common stock, pursuant to the stockholder approval rules under the rules and regulations
of The Nasdaq Stock Market. Further, A.G.P. will not be entitled to receive the Company’s common stock upon conversion, if
such conversion would result in A.G.P. owning greater than 9.99% of the Company’s then currently outstanding common stock. A.G.P. is also entitled to resale registration rights as identified in the convertible promissory note. As of January 25, 2025, the Company had sufficient authorized shares of common stock to permit the entire conversion of the convertible promissory note and the Company has also received shareholder approval to allow for the entire conversion of the convertible promissory note.

The Company may prepay the convertible promissory note in whole or in part. In the event of certain Events of Default (as defined in the convertible promissory note), all outstanding principal and accrued interest under the Convertible Note will become, or may become at A.G.P.’s election, immediately due and payable to the A.G.P.

The Company elected to account for the A.G.P. Convertible Note at fair value under ASC 825