Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 1144

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 2
Chunk 1144
---
difference of $0.5 million was recognized as an addition to Additional Paid in Capital. Management determined the extinguishment of this
note is the result of a Troubled Debt Restructuring. 

In January 2024, the Company
assumed a convertible promissory note in the amount of €850 thousand ($938 thousand) with a 10% interest maturing in March 2025 as
part of the Business Combination that was completed in December 2023. On January 3, 2024, the noteholder converted all of the principal
and accrued interest owed under the note, equal to $1.0 million, into 52,800 shares of restricted common stock.

In April 2024, the Company
issued to an institutional investor a senior convertible note in the principal amount of $2,160,000, issued with an 8.0% original issue
discount, and a warrant to purchase up to 96,444 shares of the Company’s common stock at an exercise price of $12 per share. This
warrant was adjusted on November 12, 2024 to purchase up to 455,966 shares exercisable at $1.50 per share. This warrant was again adjusted
on December 5, 2024 to purchase up to 1,155,600 shares exercisable at $1.00 per share. Maxim Group LLC (“Maxim”) acted as
placement agent for the Convertible Note issuance and also received a warrant to purchase 9,644 shares of common stock with an exercise
price of $14.25 per share and which expires on July 31, 2027, for their role as placement agent. The Company also paid Maxim a cash placement
agency fee of $140,000 and reimbursed certain out of pocket fees up to $50,000. The Company received gross proceeds of $2,000,000, before
fees and other expenses associated with the transaction. The Convertible Note matures on April 20, 2025 (unless accelerated due to an
event of default or accelerated up to six installments by the Investor), bears interest at a rate of 7% per annum, which shall automatically
be increased to 12.0% per annum in the event of default, and ranks senior to the Company’s existing and future unsecured indebtedness.
The Convertible Note is convertible in whole or in part at the option of the Investor into shares of Common Stock (the “Conversion
Shares