Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 183

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 183
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 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
common stock may fall below the $18.00 trigger price as well as the $11.50 warrant exercise price after the redemption notice is issued.

If we call the warrants
for redemption as described above, our management will have the option to require all holders that wish to exercise warrants to do so
on a “cashless basis.” In such event, each holder would pay the exercise price by surrendering the warrants for that
number of shares of common stock equal to the quotient obtained by dividing (x) the product of the number of shares of common stock
underlying the warrants, multiplied by the difference between the exercise price of the warrants and the “fair market value”
(defined below) by (y) the fair market value. The “fair market value” shall mean the average reported last sale
price of the shares of common stock for the five trading days ending on the third trading day prior to the date on which the
notice of redemption is sent to the holders of warrants.

Our management’s ability to require
holders of our warrants to exercise such warrants on a cashless