Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 3253

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 12
Chunk 3253
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 “Sponsor”) which closed
on December 22, 2023 (See FN 1).In conjunction with the Business Combination Agreement, AEG also entered into an Investor Rights Agreement.
The Investor Rights Agreement provides for certain governance requirements, registration rights and a lockup agreement under which AEG
is restricted from selling its shares in the Company for one year, or until December 22, 2024, other than 1,437,500 shares after March
22, 2024 and an additional 1,437,500 after June 22, 2024, provided the shares are registered under a registration statement on SEC Form
S-1.

Alternus Energy Group Plc
(“AEG”) was an 80% shareholder of the Company as of December 22, 2023 and as of December 31, 2023. As of December 31, 2024,
AEG was a 48% shareholder of the Company.

In January 2024, the Company
assumed a $938 thousand (€850 thousand) convertible promissory note from AEG. The note had a 10% interest maturing in March 2025.
On January 3, 2024, the noteholder converted all of the principal and accrued interest owed under the note, equal to $1.0 million, into
52,800 shares of restricted common stock.

During the period ended December
31, 2024, the Company and its subsidiaries and AEG and its subsidiaries had numerous financial transactions between each other which
were approved by both company’s board of directors. As of December 31, 2024, AEG owed $2.8 million to the Company, and the Company
owed AEG $2.3 million consisting of costs incurred by AEG on behalf of the Company. The remaining $0.5 million balance due to the Company
was written down.

Nordic ESG:

In January of 2024 the Company
issued 7,765,000 shares of restricted common stock valued at $1.23 per share to Nordic ESG and Impact Fund SCSp (“Nordic ESG”)
as settlement of AEG’s €8m note. This resulted in Nordic ESG becoming a related party.  As of December 31, 2024,
Nordic ESG was a 6.5% shareholder.

Clean Earth Acquisitions Sponsor LLC (“Sponsor”):

Sponsor was the founder and