Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 338

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 338
---
connection with our initial business combination at a price that is less than the prevailing market price of our shares at that time.

In connection with our initial
business combination, we may issue shares to investors in private placement transactions (so-called PIPE transactions) at a price
of $10.00 per share or which approximates the per-share amounts in our trust account at such time, which is generally approximately
$10.00. The purpose of such issuances will be to enable us to provide sufficient liquidity to the post-business combination entity.
The price of the shares we issue may therefore be less, and potentially significantly less, than the market price for our shares at such
time. As a result, you will experience further dilution.

The potential PIPE transactions
may result in costs particular to the de-SPAC process that would not be anticipated in a traditional initial public offering. The
potential PIPE transactions are intended to ensure a return on investment to the investor in return for funds facilitating the sponsor’s
completion of the initial business combination or providing sufficient liquidity.

58

The exercise price for the public warrants
is higher than in many similar blank check company offerings in the past, and, accordingly, the warrants are more likely to expire worthless.

The exercise price of the
public warrants is higher than is typical in many similar blank check companies in the past. Historically, the exercise price of a warrant
was generally a fraction of the purchase price of the units in the initial public offering. The exercise price for our public warrants
is $11.50 per share, subject to adjustment as provided herein. As a result, the warrants are more likely to expire worthless.

We may redeem your unexpired warrants prior
to their exercise at a time that is disadvantageous to you, thereby making your warrants worthless.

We have the ability to redeem
the outstanding warrants at any time after they become exercisable and prior to their expiration, at a price of $0.01 per warrant if,
among other things, the Reference Value equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable
upon exercise or the exercise price of a warrant and if, and only if, there is a current registration statement in effect with respect
to the shares of common stock underlying such warrants. If the foregoing conditions are satisfied and we issue a notice of redemption,
each warrant holder can exercise his, her or its warrant prior to the scheduled redemption date. However, the price of the shares of