Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 101

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 101
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 29, 2025, with an institutional investor
pursuant to which the Company issued a 20% Original Issue Discount promissory convertible note (the “2025 Note”) with a maturity
date in August 2025, which was extended to November 5, 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.

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