Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 202

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 8
Chunk 202
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 otherwise be entitled multiplied by the share price, representing the product of the average closing price of the
Company’s common stock on the OTCQB Market for the five consecutive trading days immediately preceding the effective date of the
Reverse Stock Split and the inverse of the Reverse Stock Split ratio. Proportional adjustments have also been made to the Company’s
outstanding warrants, stock options, and convertible securities, as well as to the reserves available pursuant to the terms of the Company’s
2023 Equity Incentive Plan to reflect the Reverse Stock Split, in each case, in accordance with the terms thereof.

All share and per share amounts in the accompanying
consolidated financial statements and notes thereto have been retroactively adjusted to reflect the reverse stock split for all periods
presented.

3i Warrants Adjustment:

In September 2025, as a result of the Reverse Stock Split, the 182,474
warrants held by 3i were further adjusted in accordance with their terms, such that the exercise price of each warrant is reduced to
$0.85 per share and the total number of shares underlying the warrants increased to 4,132,660 shares.

Hover Joint Venture:

On September 30, 2025, the Company entered into
and closed a Securities Purchase Agreement (“SPA”) and a Joint Venture Operating Agreement (“JVOA”) with Hover
Energy LLC (“Hover”), a Delaware company engaged in the business of developing, manufacturing and deploying distributed generation
renewable energy projects featuring Hover wind powered generators together with varied generation and storage technologies (“Microgrid
Projects”), pursuant to which Alternus sold a 49% interest in its subsidiary, EverOn Energy LLC (the “JV”) to Hover,
and issued 20,000 shares of the Company’s Series B Convertible Preferred Stock (the “Series B”) to Hover, in exchange
for which Hover contributed certain Microgrid Projects to the JV, including related supply and management services agreements to be entered
into with the JV (together, the transaction hereinafter shall be referred to as the “Joint Venture”).

Additionally, one of the Company’s subsidiaries,
Alt Alliance LLC, entered into a Settlement Agreement with Hover related to the termination of the Strategic Alliance Agreement dated
October 31, 2023 (“SAA”) as the Joint Venture has superceded the SAA. As part of the settlement, the Company agreed to repay
the total outstanding amount of $5,150,000 owed to Hover under the SAA through