Company: AEAQ
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-107760
Chunk: 8

Company: Activate Energy Acquisition Corp.
Filing Date: 2025-11-10
Form: S-1
Chunk 8
---
 to any agreement with respect to our initial business combination. Our public shareholders will experience material dilution from the issuance of the shares (the “private shares”) underlying the private units. Our public shareholders may further experience material dilution from the exercise of the 292,500 private warrants underlying the private units into 292,500 Class A ordinary shares (or up to 322,500 private warrants exercisable into 322,500 Class A ordinary shares if the underwriters’ over -allotmentoption is exercised in full). Additionally, our public shareholders may experience material dilution if the $1,500,000 in working capital loans is fully advanced by the sponsor and the sponsor elects to convert the working capital loans into private units at $10.00 per unit, resulting in the sponsor receiving an additional 150,000 private Class A ordinary shares and 75,000 private warrants. The private warrants are exercisable on a cashless basis and, if exercised on such cashless basis, may result in material dilution to our public shareholders. Upon consummation of this offering or thereafter, we will repay up to $300,000 in loans made to us by our sponsor to cover offering -relatedand organizational expenses, and we will begin paying an affiliate of our sponsor $10,000 per month (the “Administrative Services Fee”) for office space, utilities and secretarial and administrative support. In the event that following this offering we obtain working capital loans from our sponsor or any of its affiliates or from our officers or directors to finance transaction costs related to our initial business combination, up to $1,500,000 of such loans may be convertible into private units of the post -businesscombination entity at a price of $10.00 per unit at the option of our sponsor. See “ Summary — Sponsor Information”, “Summary — The Offering — Founder Shares”, “Summary — The Offering — Transfer Restrictions on Founder Shares”, “Summary — The Offering — Founder Shares Conversion and Anti -Dilution Rights,” “Risk Factors — Risks Relating to our Securities — The nominal purchase price paid by our sponsor for the founder shares may result in significant dilution to the implied value of your public shares upon the consummation of our initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares to materially decline,” and “ Certain Relationships and Related Party Transactions,” for further discussion of