Company: VGASW
Filing Date: 2025-01-06
Form Type: DEF 14C
Source: 0001213900-25-000941
Chunk: 6

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-01-06
Form: DEF 14C
Chunk 6
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) the Company’s receipt of the Written Consent (which condition has been satisfied, as described herein), (ii) at least 20 calendar days having elapsed since the Company’s mailing to its stockholders of this Information Statement and (iii) the filing of the Restated Charter. 3 As of the date of the Purchase Agreement, Cottonmouth owned 2,000,000shares of Class A Common Stock acquired pursuant to the Initial Cottonmouth Investment, or approximately 6.2% of the outstanding shares of Common Stock. Accordingly, the PIPE Investment is considered a “related party transaction” requiring the review, approval and/or ratification of the Audit Committee of the Board (the “Audit Committee”), as provided in the Audit Committee charter. The Audit Committee reviewed and approved the PIPE Investment, including the adoption of the Restated Charter, prior to approval by the Board and the Majority Holder. Immediately following the issuance of the PIPE Shares at Closing, Cottonmouth will own 14,500,000shares of Class A Common Stock, or approximately 32.5% of the outstanding shares of Common Stock (based on 32,049,621shares of Common Stock outstanding as of the Record Date and after giving effect to the issuance of the PIPE Shares at Closing). Upon Closing, the PIPE Investment would represent the second investment by Cottonmouth in the Company over the past two years, for a total investment of $70 million, making Cottonmouth the second largest shareholder of the Company. In connection with the Closing, Cottonmouth and the Company will amend (i) the Existing Equity Participation Right Agreement (the “EPRA Amendment”) to remove certain preemptive rights with respect to the Company’s equity securities granted to Cottonmouth under the Existing Equity Participation Right Agreement and (ii) that certain Amended and Restated Registration Rights Agreement, dated February 15, 2023, by and among the Company, the Sponsor, Holdings and certain other stockholders named therein (the “Existing Registration Rights Agreement”), to add Cottonmouth as a party to the Existing Registration Rights Agreement (the “Second A&R Registration Rights Agreement”). The EPRA Amendment and Second A&R Registration Rights Agreement are attached as exhibits to the Purchase Agreement, a copy of which was filed as an exhibit to the Form 8 -K. Share Increase The Share Increase is unrelated to the PIPE Investment and the implementation of the Purchaser Provisions, and is being implemented in order to fix a typographical error in the Existing Charter. The Share Increase will have no effect upon the rights of existing stockholders