Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 64

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 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October 31, 2023 (“SAA”) as the Joint Venture has superceded the SAA.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 the following methods: i) $1,150,000 through the issuance
of 1,150 shares of Series B, ii) $1,700,000 by Southern Point Capital through the settlement agreement and stipulation as previously disclosed
in the Company’s SEC Current Report on Form 8-k filed on May 2, 2025, and iii) the remaining amount to be repaid in cash by the
Company as mutually agreed upon by both parties from time to time.

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Based on the negotiated value of the transaction,
the Company issued 21,150 shares of Series B to Hover intended to be valued at $21.15 million, subject to completion of a third party
valuation. The Company has determined the fair value of the Series B issued to Hover to be $1,000 per share, for an aggregate consideration
value of approximately $21.1 million. The Joint Venture brings in a substantial pipeline of Wind Powered Microgridstm projects
and clients in the UK and the US, and the Company believes that the Joint Venture will immediately improve Company’s stockholder’s
equity. The Company has initially valued the future revenue streams and income from these projects at over $50 million, subject to third
party valuation. The transaction represents a material acquisition exceeding 20 percent of the Company’s consolidated assets, requiring
the filing of an amendment to this Form 8-K with financial statements and pro forma financial information pursuant to Item 9.01 of Form
8-K within 75 days.

Series B Convertible Preferred Stock

On September 30, 2025, the board of directors
(the “Board”) of the Company declared the formation of, and approved the issuance of, an aggregate of 21,150 shares of Series
B Convertible Preferred Stock, par value $0.0001 per share (“Series B”). The Company filed a certificate of designation (