Company: VGASW
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001628280-25-020032
Chunk: 48

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 48
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. The up-C structure allows Holdings to retain its equity ownership through OpCo, an entity that is classified as a partnership for U.S. federal income tax purposes, in the form of Class C OpCo Units, and provides potential future tax benefits for Verde Clean Fuels when the holders of Class C OpCo Units ultimately exchange their Class C OpCo Units and shares of the Company’s Class C Common Stock for shares of Class A Common Stock. We are the sole managing member of OpCo. As such, we consolidate OpCo, and the unitholders that hold economic interests directly in OpCo are presented as redeemable noncontrolling interests in our financial statements.

Holders of Class C OpCo Units, other than Verde Clean Fuels, have the right (a “

#### redemption right
”), subject to certain limitations, to exchange all or a portion of its Class C OpCo Units and a corresponding number of shares of Class C Common Stock for, at OpCo’s election, (i) shares of class A common stock on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, or (ii) an equivalent amount of cash.

#### Promissory Note with the Sponsor
On February 15, 2023, the Company entered into a promissory note with the Sponsor totaling $409,612 (the “

#### Promissory Note
”), which cancelled and superseded all prior promissory notes. The Promissory Note and the entire principal balance of the Promissory Note was payable on February 15, 2024 in cash or in shares at the Company’s election. On February 15, 2024, the Company settled the Promissory Note through the issuance of 40,961 shares of its Class A Common Stock to the Sponsor at a conversion price of $10.00 per share as payment in full for this obligation.

#### PIPE Transaction in Connection with the Closing
In August 2022, concurrently with the execution of the Business Combination Agreement, certain investors (the “

#### Original PIPE Investors
”) entered into separate subscription agreements (the “

#### Original Subscription Agreements
”) with CENAQ, pursuant to which the Original PIPE Investors agreed to purchase, and CENAQ agreed to sell to the Original PIPE Investors, an aggregate of 8,000,000 shares of Class A Common Stock, for a purchase price of $10.00 per share, or an aggregate purchase price of $80