Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 155

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 155
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Our sponsor has invested in
us an aggregate of $2,675,000, comprised of the $25,000 purchase price for the founder shares and the $2,650,000 purchase price for the
private placement units. Assuming a trading price of $10.00 per share upon consummation of our initial business combination, the 2,300,000
founder shares and 265,000 private placement units would have an aggregate implied value of $22,650,000. Even if the trading price of
our common stock was as low as approximately $1.18 per share, and the private placement units were worthless, the value of the founder
shares would be equal to the sponsor’s initial investment in us. As a result, our sponsor is likely to be able to recoup its investment
in us and make a substantial profit on that investment, even if our public shares have lost significant value. Accordingly, our management
team, which owns interests in our sponsor, may have an economic incentive that differs from that of the public stockholders to pursue
and consummate an initial business combination rather than to liquidate and to return all of the cash in the trust to the public stockholders,
even if that business combination were with a riskier or less-established target business. For the foregoing reasons, you should
consider our management team’s financial incentive to complete an initial business combination when evaluating whether to redeem
your shares prior to or in connection with the initial business combination.

We do not have a specified maximum redemption
threshold. The absence of such a redemption threshold may make it possible for us to complete a business combination with which a substantial
majority of our stockholders do not agree.

Our amended and restated certificate
of incorporation does not provide a specified maximum redemption threshold, except that in no event will we redeem our public shares in
an amount that would cause us not to comply with any net tangible asset or cash requirement that may be contained in the agreement relating
to our initial business combination, unless such condition is waived. As a result, we may be able to complete our initial business combination
even though a substantial majority of our public stockholders do not agree with the transaction and have redeemed their shares or, if
we seek stockholder approval of our initial business combination and do not conduct redemptions in connection with our initial business
combination pursuant to the tender offer rules, have entered into privately negotiated agreements to sell their shares to our sponsor,
directors, officers, advisors or any