Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 53

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 1
Chunk 53
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”) with a maturity
date in August 2025, in the principal sum of $312,500. Pursuant to the terms of the 2025 Note, the Company agreed to pay to the entire
principal amount on the Maturity Date, failing which and certain events of default (as described in the 2025 Note), the 20% Original Issue
Discount shall increase by 5% per month until the Note is fully repaid. The Purchase Agreement contains customary representations and
warranties by the Company and closed on the same date thereof. The Purchase Agreement resulted in net proceeds of $250,000 to the Company,
which the Company intends to use for working capital purposes.

The 2025 Note, issued pursuant
to the Purchase Agreement, is convertible at the option of the Holder at any time after the Maturity Date, including with registration
rights, at a conversion price per share equal to ninety percent (90%) of the Company’s common stock’s VWAP (which is the three
(3) Trading Days immediately prior to such Conversion Date (or the nearest preceding date)) as of the date of such conversion (the “Conversion
Date”). The current 2025 Note is a senior direct debt obligation of the Company ranking pari passu with all other Notes, but subordinate
and junior in right of payment to the Senior Convertible Notes originally issued to 3i, LP., and other senior or pari passu Indebtedness
(as defined in the Purchase Agreement) of the Company.

On June 6, 2025, the Company
entered into a Note Purchase Agreement (the “Purchase Agreement”), by and between the Company and an institutional investor
(the “Investor”), pursuant to which the Company agreed to issue to the Investor a promissory note in the aggregate total principal
amount of $240,000, having a 16.67% original issue discount, an interest rate of 12% per annum and a maturity date of December 31, 2025
(the “Note”). Pursuant to the Purchase Agreement, with the closing of the private placement of the Note, the Company received
gross proceeds of $200,000, before fees and other expenses associated with the transaction.

32

ITEM 2 - MANAGEMENT’S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our
financial condition and results of our operations should be read in conjunction with the condensed consolidated financial statements and
related notes included