Company: CDT
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001641172-25-001246
Chunk: 937

Company: CDT Equity Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 9C
Chunk 937
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in favor of the Business Combination.

PIPE
Subscription Agreement

In
September 2023, concurrently with the completion of the Business Combination, pursuant to the PIPE Subscription Agreement (the “PIPE
Subscription Agreement “) for an aggregate purchase price of $20.0 million, the Company issued an aggregate of 20,000 shares
of the Company’s Common Stock and PIPE Warrants (the “PIPE Warrants”) to purchase 20,000 shares of Company Common
Stock. In conjunction with the execution of the PIPE Subscription Agreement, Corvus Capital and its affiliates entered into a participation
and inducement agreement with the Private Placement Investor whereby Corvus agreed to provide certain payments and economic benefits
to such investor in the event Corvus Capital sold or pledged in a debt transaction any of the shares it was receiving in the Business
Combination. In certain circumstances, such investor may have a right to cause Corvus Capital to transfer certain of its shares to such
investor.

The
PIPE Subscription Agreement contains registration rights, pursuant to which within 15 business days after the closing of the PIPE Financing,
the Company was required to use reasonable best efforts to file with the SEC a registration statement registering the resale of shares
of the Company’s common stock. On October 17, 2023, the Company filed a registration statement on Form S-1 (SEC File No. 333-275056)
to satisfy that contractual requirement, which registration statement was declared effective by the SEC on December 15, 2023.

The
PIPE Warrants are exercisable until September 22, 2028 (five years after the completion of the Business Combination) and have an exercise
price of $11.50 per share, subject to adjustment as set forth in the PIPE Warrants for stock splits, stock dividends, recapitalizations
and similar customary adjustments. The Private Placement Investor may exercise each PIPE Warrant on a cashless basis if the shares underlying
the PIPE Warrants are not then registered for resale pursuant to an effective registration statement.

The
Company common stock and PIPE Warrants to purchase Company common stock issued pursuant to the PIPE Subscription Agreement were not registered
under the Securities Act and were issued in reliance upon the exemption provided under Section 4(a)(2) of the Securities Act and/or Regulation
D promulgated thereunder.

On
December 11, 2024, the warrants were modified to reduce the exercise price to $0.0883 and the warrants were exercised on December 31