Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 240

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 240
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1.

Alternus Energy Group Plc
(“AEG”) was an 80% shareholder of the Company as of December 22, 2023 and as of December 31, 2023. As of December 31, 2024,
AEG was a 48% shareholder of the Company.

In January 2024, the Company
assumed a $938 thousand (€850 thousand) convertible promissory note from AEG. The note had a 10% interest maturing in March 2025.
On January 3, 2024, the noteholder converted all of the principal and accrued interest owed under the note, equal to $1.0 million, into
52,800 shares of restricted common stock.

During the period ended December
31, 2024, the Company and its subsidiaries and AEG and its subsidiaries had numerous financial transactions between each other which
were approved by both company’s board of directors. As of December 31, 2024, AEG owed $2.8 million to the Company, and the Company
owed AEG $2.3 million consisting of costs incurred by AEG on behalf of the Company. The remaining $0.5 million balance due to the Company
was written down.

Nordic ESG:

In January of 2024 the Company
issued 7,765,000 shares of restricted common stock valued at $1.23 per share to Nordic ESG and Impact Fund SCSp (“Nordic ESG”)
as settlement of AEG’s €8m note. This resulted in Nordic ESG becoming a related party.  As of December 31, 2024,
Nordic ESG was a 6.5% shareholder.

Clean Earth Acquisitions Sponsor LLC (“Sponsor”):

Sponsor was the founder and
controlling shareholder of the Company during the year ended December 31, 2023 and up to the Business Combination Closing Date, December
22, 2023, when Sponsor became an 11% shareholder of the Company. The Sponsor entered into the Business Combination Agreement with the
Company and AEG, and also entered into the Investor Rights Agreement and the Sponsor Support Agreement, The Sponsor agreed, pursuant
to the Sponsor Support Agreement, to vote all of their shares of capital stock (and any securities convertible or exercisable into capital
stock) in favor of the approval of the Business Combination and against any other transactions, as well as to waive its redemption rights