Company: VGASW
Filing Date: 2025-01-06
Form Type: DEF 14C
Source: 0001213900-25-000941
Chunk: 5

Company: Verde Clean Fuels, Inc.
Filing Date: 2025-01-06
Form: DEF 14C
Chunk 5
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 and among the Company, OpCo and Cottonmouth, pursuant to which Verde must grant Cottonmouth the right to participate and jointly develop facilities in the Permian Basin utilizing Verde’s STG+® technology for the production of gasoline derived from economically disadvantaged natural gas feedstocks. On February 6, 2024, Verde and Cottonmouth entered into a joint development agreement for the proposed development, construction, and operation of a facility to produce commodity -gradegasoline using natural gas feedstock supplied from Diamondback Energy Inc.’s (“Diamondback”) operations in the Permian Basin. The PIPE Investment and the Purchaser Provisions The adoption of the Purchaser Provisions in the Restated Charter is being effected, immediately prior to and contingent upon the consummation of the Closing, in connection with the transactions contemplated by that certain Class A Common Stock Purchase Agreement, dated as of December 18, 2024 (the “Purchase Agreement”), by and between the Company and Cottonmouth, pursuant to which, on the terms and subject to the conditions set forth therein, the Company agreed to issue and sell to Cottonmouth in a private placement an aggregate of 12,500,000shares (the “PIPE Shares”) of the Company’s Class A Common Stock at a price of $4.00 per share (the “Per Share Price”) for an aggregate purchase price of $50,000,000 (the “PIPE Investment”). The Per Share Price represents an approximately 7.0% premium over the closing price of the Class A Common Stock on The Nasdaq Capital Market on December 18, 2024, the last trading day immediately preceding the Company’s entry into the Purchase Agreement and an approximately 7.0% premium over the average closing price of the Class A Common Stock on the Nasdaq Capital Market for the five trading days immediately preceding the Company’s entry into the Purchase Agreement. The PIPE Investment was announced in a press release, dated December 19, 2024, and a Current Report on Form 8 -Kfiled with the Securities and Exchange Commission on December 19, 2024 (the “Form 8 -K”). A copy of the Purchase Agreement was filed as an exhibit to the Form 8 -K. The Company expects to use the proceeds from the PIPE Investment to fund a portion of the development and construction of certain facilities in the Permian Basin and for other general corporate purposes. The Closing is subject to certain customary conditions set forth in the Purchase Agreement, including, but not limited to, (i