Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 340

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 340
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 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 of residence of the holder of the warrants.

No warrants will be exercisable
and we will not be obligated to issue shares of common stock unless the shares of common stock issuable upon such exercise have been
registered or qualified or deemed to be exempt under the securities laws of the state of residence of the holder of the warrants. If
the shares of common stock issuable upon exercise of the warrants are not qualified or exempt from qualification in the jurisdictions
in which the holders of the warrants reside, the warrants may be deprived of any value, the market for the warrants may be limited and
they may expire worthless if they cannot be sold.

Our warrants and founder shares may have
an adverse effect on the market price of shares of our common stock and make it more difficult to effectuate our initial business combination.

In a private placement in
connection with our IPO, our sponsor purchased 265,000 private placement units, each containing one share of our common stock, one warrant
exercisable to purchase one share of our common stock at a price of $11.50 per share, subject to adjustment, and one-eight of a
right. Our initial stockholder, our sponsor, currently holds 2,565,000 shares of our common stock. In addition, if our sponsor,
an affiliate of our sponsor or certain of our directors and officers make any working capital loans, up to $1,500