Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 168

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 168
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 the Company agreed
to issue to SPC shares (the “Settlement Shares”) of the Company’s Common Stock. The Settlement Agreement provides that
the Settlement Shares will be issued in one or more tranches, as necessary, sufficient to satisfy the Settlement Amount through the issuance
of securities issued pursuant to Section 3(a)(10) of the Securities Act. Pursuant to the Agreement, SPC may deliver requests to the Company
for additional shares of Common Stock to be issued to SPC until the Settlement Amount is paid in full, provided that any excess shares
issued to SPC will be cancelled.

In connection with the Agreement,
on May 2, 2025, the Company issued 4,000,000 shares of Common Stock to SPC as a settlement fee. The issuance of Common Stock to SPC pursuant
to the terms of the Agreement approved by the Order is exempt from the registration requirements of the Securities Act pursuant to Section
3(a)(10) thereof, as an issuance of securities in exchange for bona fide outstanding claims, where the terms and conditions of such issuance
are approved by a court after a hearing upon the fairness of such terms and conditions at which all persons to whom it is proposed to
issue securities in such exchange shall have the right to appear. The Agreement provides that in no event will the number of shares of
Common Stock issued to SPC or its designee in connection with the Agreement, when aggregated with all other shares of Common Stock then
beneficially owned by SPC and its affiliates (as calculated pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and the rules and regulations thereunder), result in the beneficial ownership by SPC and its affiliates
(as calculated pursuant to Section 13(d) of the Exchange Act and the rules and regulations thereunder) at any time of more than 4.99%
of the Common Stock.

31

Subsequent to March 31, 2025,
the Company and LiiON LLC mutually agreed to rescind the Asset Purchase Agreement (see Footnote 5). The primary driver that led the Parties
to discuss alternative plans was the February 2025 Nasdaq notice that the Company’s equity had been delisted. Prior to receiving
the notice, the Company expected Nasdaq to provide an extension of time to correct the matters that resulted in delisting.  Although
the acquisition Agreement permitted the Company to issue restricted common stock (i.e.,