Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 166

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 166
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 have not been satisfied (or waived in writing by the Holder). The Convertible Note is convertible, at the option of
the Investor, at any time, into such number of shares of Common Stock of the Company equal to the principal amount of the Convertible
Note plus all accrued and unpaid interest at a conversion price, as adjusted, equal to the lesser of i) $6.00 and ii) 55% of the Market
Price. Market Price shall mean the average of the three lowest traded prices of at least 100 shares during the twenty (20) Trading Days
immediately prior to the Conversion Date. (the “Conversion Price”). The Conversion Price is subject to full ratchet antidilution
protection, subject to a floor conversion price, as adjusted, of $0.02 per share. The Convertible Note may not be converted and shares
of Common Stock may not be issued under the Convertible Note if, after giving effect to the conversion or issuance, the Investor together
with its affiliates would beneficially own in excess of 4.99% (or, upon election of the Investor, 9.99%) of the outstanding Common Stock.
In addition to the beneficial ownership limitations in the Convertible Note, the sum of the number of shares of Common Stock that may
be issued under that certain Purchase Agreement (including the Convertible Note and Warrant and Common Stock issued thereunder) is limited
to 19.99% of the outstanding Common Stock as of April 19, 2024 (the “Exchange Cap”) unless shareholder approval (as defined
in the Purchase Agreement) (“Stockholder Approval”) is obtained by the Company to issue more than the Exchange Cap. On September
26, 2024 the Company’s shareholders approved the potential issuance of shares by the Company of more than the Exchange Cap. The
Company adopted ASU 2020-06 as of January 1, 2023. This ASU removes the concepts of a beneficial conversion feature and cash conversion
feature from the ASC guidance. The Company recorded a loss on debt issuance of $0.9 million. As of December 31, 2024, the outstanding
principal was $0.4 million with fair value of $0.7 million at that date. The Company also recorded a $1.3 million gain on movement in
fair value in the year ended December 31, 2024 and a $0.6 million loss on movement in fair value for the six months ended June