Company: AEAQ
Filing Date: 2025-08-29
Form Type: DRS
Source: 0001213900-25-081972
Chunk: 190

Company: Activate Energy Acquisition Corp.
Filing Date: 2025-08-29
Form: DRS
Chunk 190
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 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 — Risks Relating to our Securities — The nominal purchase price paid by our sponsor for the founder shares may result in significant dilution to the implied value of your public shares upon the consummation of our initial business combination, and our sponsor is likely to make a substantial profit on its investment in us in the event we consummate an initial business combination, even if the business combination causes the trading price of our ordinary shares to materially decline” and “ Dilution.” The founder shares will automatically convert into Class A ordinary shares concurrently with or immediately following the consummation of our initial business combination, or at any time prior thereto at the option of the holder thereof, on a one -for -onebasis, subject to adjustment as provided herein. In the case that additional Class A ordinary shares, or equity -linkedsecurities, are issued or deemed issued in excess of the amounts sold in this offering and related to the closing of our initial business combination, the ratio at which Class B ordinary shares shall convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the outstanding Class B ordinary shares agree to waive such anti -dilutionadjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares issuable upon conversion of all Class B ordinary shares