Company: NOEMW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001013762-25-004368
Chunk: 310

Company: CO2 Energy Transition Corp.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 310
---
 the closing of our IPO nears, which is the deadline for the completion
of our initial business combination.

44

The nominal purchase price paid by our sponsor
for the founder shares may result in significant dilution to the implied value of your public shares upon the consummation of our initial
business combination.

We sold units at an offering
price of $10.00 per unit and the amount in our trust account is initially $10.00 per public share, implying an initial value of $10.00
per public share. However, our sponsor paid a nominal aggregate purchase price of $25,000 for the founder shares, or approximately $0.011
per share. As a result, the value of our public shares may be significantly diluted upon the consummation of our initial business combination,
when the founder shares are converted into public shares.

The value of the founder shares following
completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the
trading price of our public shares at such time is substantially less than $10.00 per share.

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