Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 48

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 Italia-01 S.r.l; AED Italia-02 S.r.l; AED Italia-03
S.r.l; AED Italia-04 S.r.l; AED Italia-05 S.r.l; AED Italia-06 S.r.l; AED Italia-07 S.r.l; AED Italia-08 S.r.l; PC-Italia-01 S.r.l;
PC-Italia-03 S.r.l; PC-Italia-04 S.r.l; Risorse Solari I S.r.l; and Risorse Solari III S.r.l (the “Transaction”), for a
total consideration of (i) the assumption of approximately $17.6 million in debt (ii) the forbearance by the Majority Buyer on the
right to claim up to $17.6 million against the Company’s parent guarantee until MH02’s solar projects reach ready to
build status, and (iii) the right of the Company to purchase MH02’s solar photovoltaic projects at fair market value, subject
to a minimum price of €150,000 per megawatt, as each project reaches ready to build status. The Majority Buyer acquired 75.5%
of MH02 and the Minority Buyer acquired the remaining 24.5% of MH02’s share capital.

As part of the Transaction the Minority Buyer
agreed to forbear its claim aganst AEG, and as an incentive for the parties to enter into the transaction, the Company issued 53,300
shares of restricted common stock to the Minority Buyer. The Company recorded a fair value of $0.4 million for this share issuance as
receivable by AEG to the Company.

As a result of the Transaction,
the Company recored a gain on the sale of approximately $11.9 million and removed approximately $18.3 million in debt and payables related
to MH02’s activities. 

25

As this sale is not considered
an exit strategy of the Italian market, the assets were not classified as discontinued operations in accordance with ASC 205-20.

The major classes of assets
and liabilities transferred on May 7, 2025 in the sale of MH02 and its subsidiaries are shown below:

    As of May 7, 
  
    MH 02 and Italian Subsidiaries 
    2025 

    (in thousands) 

    Assets: 

    Cash and cash equivalents 
    $47 
  
    Other current assets 
     388