Company: ALCE
Filing Date: 2025-06-30
Form Type: 10-Q
Source: 0001213900-25-059349
Chunk: 170

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-30
Form: 10-Q
Item: Part I, Item 8
Chunk 170
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right to claim up to $17,000,000 against the Company’s parent guarantee until MH02’s solar projects reach ready to build status,
and (iii) the right of the Company to purchase MH02’s solar photovoltaic projects at fair market value, subject to a minimum price
of €150,000 ($169,605) per megawatt, as each project reaches ready to build status. The Majority Buyer acquired 75.5% of MH02 and
the Minority Buyer acquired the remaining 24.5% of MH02’s share capital.

As part of the Transaction
and debt forbearance, the Company issued 10,660,000 shares of restricted common stock to the Minority Buyer. (See unregistered sale of
securities above).

As a result of the Transaction,
the Company has removed approximately $22.6 million in debt and costs related to MH 02’s activities, which will improve shareholders’
equity by approximately $14.4 million.

On May 20, 2025 the Company
issued 8 million shares of restricted common stock to a related party, Alternus Energy Group PLC, for services rendered, valued at $224,000.

On May 29, 2025, the Company
entered into a Note Purchase Agreement (the “Purchase Agreement”), dated as of May 29, 2025, with an institutional investor
pursuant to which the Company issued a 20% Original Issue Discount promissory convertible note (the “2025 Note”) with a maturity
date in August 2025, in the principal sum of $312,500. Pursuant to the terms of the 2025 Note, the Company agreed to pay to the entire
principal amount on the Maturity Date, failing which and certain events of default (as described in the 2025 Note), the 20% Original Issue
Discount shall increase by 5% per month until the Note is fully repaid. The Purchase Agreement contains customary representations and
warranties by the Company and closed on the same date thereof. The Purchase Agreement resulted in net proceeds of $250,000 to the Company,
which the Company intends to use for working capital purposes.

The 2025 Note, issued pursuant
to the Purchase Agreement, is convertible at the option of the Holder at any time after the Maturity Date, including with registration
rights, at a conversion price per share equal to ninety percent (90%) of the Company’s common stock’s VWAP (which