Company: AEAQ
Filing Date: 2025-08-29
Form Type: DRS
Source: 0001213900-25-081972
Chunk: 137

Company: Activate Energy Acquisition Corp.
Filing Date: 2025-08-29
Form: DRS
Chunk 137
---
 of the founder shares result in the issuance of Class A ordinary shares on a greater than one -to -onebasis upon conversion of the founder shares at the time of our initial business combination and would become exacerbated to the extent that public shareholders seek redemptions from the trust for their public shares. In addition, because of the anti -dilutionprotection in the founder shares, any equity or equity -linkedsecurities issued in connection with our initial business combination would be disproportionately dilutive to our Class A ordinary shares. The value of the founder shares following completion of our initial business combination is likely to be substantially higher than the nominal price paid for them, even if the trading price of our ordinary shares at such time is substantially less than $10.00 per public share. Upon the closing of this offering and assuming no exercise of the over -allotmentoption, our sponsor, and the non -managingsponsor investors (if any) will have invested in us an aggregate of $3,875,000 ($4,175,0000 if the underwriters’ over -allotmentoption is exercised in full), comprised of the $25,000 purchase price for the founder shares and the $3,850,000 purchase price (or $4,150,000 if the underwriters’ over -allotmentoption is exercised in full) for the private units (or $10.00 per private unit). Assuming a trading price of $10.00 per public share (the amount per share initially placed in trust) upon consummation of our initial business combination, the 6,666,667 founder shares (7,666,667 founder shares if the overallotment is exercised in full) would have an aggregate implied value of $66,666,670 ($76,666,670 if the overallotment is exercised in full). Even if the trading price of our ordinary shares were as low as $0.50 per share, assuming no exercise of the underwriters’ over -allotmentoption, the value of the founder shares would be equal to our sponsor’s and the non -managingsponsor investors’ (if any) aggregate initial investment in us (without ascribing value to the private units and the underlying securities). As a result, our sponsor, and the non -managingsponsor investors (if any) are likely to be able to make a substantial profit on its investment in us at a time when our public shares have lost significant value. Accordingly, members of our management team