Company: AEAQ
Filing Date: 2025-08-29
Form Type: DRS
Source: 0001213900-25-081972
Chunk: 149

Company: Activate Energy Acquisition Corp.
Filing Date: 2025-08-29
Form: DRS
Chunk 149
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 and make it more difficult to effectuate our initial business combination. We will be issuing public warrants to purchase 10,000,000 of our Class A ordinary shares (or up to 11,500,000 Class A ordinary shares if the underwriters’ over -allotmentoption is exercised in full) as part of the units offered by this prospectus and, simultaneously with the closing of this offering, we will be issuing in a private placement an aggregate of 585,000 private units (645,000 private units if the underwriters’ over -allotmentoption is exercised in full), which will contain 292,500 private warrants (322,500 private warrants if the underwriters’ over -allotmentoption is exercised in full), each exercisable for one Class A ordinary share at an exercise price of $11.50 per Class A ordinary share. In addition, if the sponsor makes any working capital loans, it may convert those loans into up to an additional 150,000 private units, at the price of $10.00 per unit, which units will contain up to 75,000 private warrants. To the extent we issue ordinary shares to effectuate a business transaction, the potential for the issuance of a substantial number of additional Class A ordinary shares upon exercise of these warrants could make us a less attractive acquisition vehicle to a target business. Such warrants, when exercised, will increase the number of issued and outstanding Class A ordinary shares and reduce the value of the Class A ordinary shares issued to complete the business transaction. Therefore, our warrants may make it more difficult to effectuate a business transaction or increase the cost of acquiring the target business. Because each unit contains one-half of one warrant and only a whole warrant may be exercised, the units may be worth less than units of other special purpose acquisition companies. Each unit contains one -halfof one warrant. Pursuant to the warrant agreement, no fractional warrants will be issued upon separation of the units, and only whole units will trade. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, we will, upon exercise, round down to the nearest whole number the number of Class A ordinary shares to be issued to the warrant holder. This is different from other similar offering in that each unit consists of one ordinary share and one -halfof one warrant to purchase one ordinary share, rather than one ordinary share and one whole warrant. We have established the components of the units in this way in order to reduce