Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 490

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 490
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ic ESG

In January of 2024, the Company
issued 310,600 shares of restricted common stock valued at $30.75 per share to Nordic ESG and Impact Fund SCSp (“Nordic ESG”)
as settlement of AEG’s €8 million ($9.7 million) note. This resulted in Nordic ESG becoming a 10% shareholder. As of December
31, 2024 Nordic ESG was a 6.5% shareholder.

Sponsor:

Clean Earth Acquisitions
Sponsor LLC (“Sponsor”) was the founder and controlling shareholder of the Company during the year ended December 31, 2023
and up to the Business Combination Closing Date, December 22, 2023, when Sponsor became an 11% shareholder of the Company. The Sponsor
entered into the Business Combination Agreement with the Company and AEG, and also entered into the Investor Rights Agreement and the
Sponsor Support Agreement, The Sponsor agreed, pursuant to the Sponsor Support Agreement, to vote all of their shares of capital stock
(and any securities convertible or exercisable into capital stock) in favor of the approval of the Business Combination and against any
other transactions, as well as to waive its redemption rights, agree to not transfer securities of the Company, and waive any anti-dilution
or similar protections with respect to founder shares.

In order to fund working
capital deficiencies or finance transaction costs in connection with a business combination, the Sponsor initially loaned $350,000 to
the Company, in accordance with an unsecured promissory note (the “WC Note”) issued on September 26, 2022, under which up
to $850,000 may be advanced. On August 8, 2023, the Company issued an additional $650,000 promissory note to the Sponsor to fund the
Second WC Note. The Second WC Note is non-interest bearing and payable on the date which the Company consummates its initial Business
Combination. Both of these notes were settled on the Business Combination closing date in exchange for 9,000 shares of the Company’s
common stock.

On December 18, 2023, the
Sponsor entered into a non-redemption agreement (the “NRA”) with the Company and the investor named therein (the “Investor”).
Pursuant to the terms of the NRA, among other things, the Investor agreed to withdraw redemptions in connection with the Business Combination
on any Common Stock