Company: ALCE
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001213900-25-105077
Chunk: 28

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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% of the average of
the two (2) lowest daily VWAPs (as defined in the Convertible Note) in the ten (10) trading days immediately prior to each conversion
date and (y) $350. “Equity Conditions Failure” means that on any day during the period commencing twenty (20) trading days
prior to the applicable Installment Notice Date or Interest Date (each as defined in the Convertible Note) through the later of the applicable
Installment Date or Interest Date and the date on which the applicable shares of Common Stock are actually delivered to the Holder, the
Equity Conditions have not been satisfied (or waived in writing by the Holder). The Convertible Note is convertible, at the option of
the Investor, at any time, into such number of shares of Common Stock of the Company equal to the principal amount of the Convertible
Note plus all accrued and unpaid interest at a conversion price, as adjusted, equal to the lesser of i) $6.00 and ii) 55% of the Market
Price. Market Price shall mean the average of the three lowest traded prices of at least 100 shares during the twenty (20) Trading Days
immediately prior to the Conversion Date. (the “Conversion Price”). The Conversion Price is subject to full ratchet antidilution
protection, subject to a floor conversion price, as adjusted, of $0.02 per share. The Convertible Note may not be converted and shares
of Common Stock may not be issued under the Convertible Note if, after giving effect to the conversion or issuance, the Investor together
with its affiliates would beneficially own in excess of 4.99% (or, upon election of the Investor, 9.99%) of the outstanding Common Stock.
In addition to the beneficial ownership limitations in the Convertible Note, the sum of the number of shares of Common Stock that may
be issued under that certain Purchase Agreement (including the Convertible Note and Warrant and Common Stock issued thereunder) is limited
to 19.99% of the outstanding Common Stock as of April 19, 2024 (the “Exchange Cap”) unless shareholder approval (as defined
in the Purchase Agreement) (“Stockholder Approval”) is obtained by the Company to issue more than the Exchange Cap. On September
26, 2024 the Company’s shareholders approved the potential issuance of shares by the Company of more than the Exchange Cap. The
Company adopted ASU 2020-