Company: VGASW
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001628280-25-020032
Chunk: 52

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 52
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 Financing
On December 18, 2024, we entered into a Class A Common Stock Purchase Agreement with Cottonmouth (the “

#### Purchase Agreement
”), pursuant to which we agreed to issue and sell to Cottonmouth in a private placement an aggregate of 12,500,000 shares of our Class A Common Stock at a price of $4.00 per share for an aggregate purchase price of $50 million (the “

#### 2025 PIPE Investment
”). Closing of the 2025 PIPE Investment occurred on January 29, 2025.

In connection with the closing of the 2025 PIPE Investment, on January 29, 2025, the Company (i) entered into the A&R Registration Rights Agreement, as described under the section entitled “ Business Combination and Related Transactions – A&R Registration Rights Agreement ” above, (ii) entered into the Amended Participation Right Agreement, as described in the section entitled “ Business Combination and Related Transactions – Amended Equity Participation Right Agreement ” above, and (iii) filed the Charter with the Delaware Secretary of State, as described in the section entitled “ Information Regarding the Board and Corporate Governance – Cottonmouth Director Designee Right Pursuant to the Charter ” above.

#### Joint Development Agreement
On February 6, 2024, the Company and Cottonmouth entered into a joint development agreement (the “

#### JDA
”) for the proposed development, construction, and operation of a facility to produce commodity-grade gasoline using natural gas feedstock supplied from Diamondback’s operations in the Permian Basin (the “

#### Permian Basin Project
”). The JDA provides a pathway forward for the parties to reach final definitive documents and final investment decision (“

#### FID
”). The JDA frames the contracts contemplated to be entered into between the parties, including an operating agreement, ground lease agreement, construction agreement, license agreement and financing agreements as well as conditions precedent to close such as FID. We expect that the proposed facility, which is to be located in Martin County, Texas in the heart of the Permian Basin, could serve as a template for additional natural gas-to-gasoline projects throughout the Permian Basin and other pipeline-constrained basins in the U.S., as well as addressing flared or stranded natural gas opportunities internationally. Under the terms of the JDA, 65% of the approved development costs that we incur in connection with the Permian Basin Project (including front-end engineering and design (“

#### FEED
”) costs) are reimbursed