Company: AEAQ
Filing Date: 2025-08-29
Form Type: DRS
Source: 0001213900-25-081972
Chunk: 36

Company: Activate Energy Acquisition Corp.
Filing Date: 2025-08-29
Form: DRS
Chunk 36
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 will issue membership interests at a nominal purchase price to the non -managingsponsor investors at the closing of this offering reflecting indirect interests in an aggregate of 3,100,000 founder shares (or 3,400,000 founder shares if the over -allotmentoption is exercised in full) held by the sponsor.

14 (2)The non -managingsponsor investors have expressed an interest to purchase, indirectly through the purchase of non -managingmembership interests, an aggregate of 310,000 private units ($3,100,000 in the aggregate) at a price of $10.00 per unit (or 340,000 warrants ($3,400,000 in the aggregate) if the over -allotmentoption is exercised in full) in a private placement that will close simultaneously with the closing of this offering. (3)As of the date of this prospectus, no such arrangements are currently in place. (4)As of the date of this prospectus, no such arrangements are currently in place. Any such salary or fee would be paid using available working capital funds (including proceeds from any promissory notes issued by us and funds released from the trust account upon completion of our initial business combination) but would not in any event be paid out of the Administrative Services Fee. Because our sponsor acquired the founder shares at a nominal price ($0.003 per share), our public shareholders will incur immediate and substantial dilution upon the closing of this offering, assuming no value is ascribed to the warrants included in the units. Further, the Class A ordinary shares issuable in connection with the conversion of the founder shares may result in material dilution to our public shareholders due to the anti -dilutionrights of our founder shares that may result in an issuance of Class A ordinary shares on a greater than one -to -onebasis upon conversion. Additionally, our public shareholders may experience dilution from the exercise of the 292,500 private warrants (322,500 private warrants if the underwriters’ over -allotmentoption is exercised in full) that compose part of the private units to be purchased by our sponsor and BTIG simultaneously with the closing of this offering as well as conversion of any working capital loans into units, if elected by the sponsor or by another person or entity who made such working capital loans. The exercise of the warrants would cause the actual dilution to the public shareholders to be higher, particularly where a cashless exercise is utilized. See the sections titled “ Risk Factors —