Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 2311

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 7
Chunk 2311
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 January 2024, the Company
assumed an €850 thousand ($938 thousand) convertible promissory note from AEG. The note had a 10% interest maturing in March 2025.
On January 3, 2024, the noteholder converted all of the principal and accrued interest owed under the note, equal to $1.0 million, into
52,800 shares of restricted common stock.

During the period ended December
31, 2024, the Company and its subsidiaries and AEG and its subsidiaries had numerous financial transactions between each other which
were approved by both company’s board of directors. As of December 31, 2024, AEG owed $2.8 million to the Company, and the Company
owed AEG $2.3 million consisting of costs incurred by AEG on behalf of the Company. The remaining $0.5 million balance due to the Company
was written down.

Nordic 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