Company: AEAQ
Filing Date: 2025-11-10
Form Type: S-1
Source: 0001213900-25-107760
Chunk: 5

Company: Activate Energy Acquisition Corp.
Filing Date: 2025-11-10
Form: S-1
Chunk 5
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ingsponsor investors, the post -offeringtrading volume, volatility and liquidity of our securities may be reduced relative to what they would have been had the units been more widely offered and sold to other public investors. We do not expect any purchase of units by the non -managingsponsor investors to negatively impact our ability to meet Nasdaq listing eligibility requirements. In addition, the underwriter has full discretion to allocate the units to investors and may determine to sell fewer units to the non -managingsponsor investors, or none at all, and the purchase of the non -managingsponsor membership interests is not contingent upon participation in this offering or vice versa. The underwriter will receive the same upfront discounts and commissions and deferred underwriting commissions on units purchased by the non -managingsponsor investors, if any, as it will on the other units sold to the public in this offering. In addition, none of the non -managingsponsor investors have any obligation to vote any of their public shares in favor of our initial business combination. Nevertheless, the non -managingsponsor investors will be incentivized to vote their public shares in favor of a business combination due to their indirect ownership through the sponsor of founder shares and private units. For a discussion of certain additional arrangements with the non -managingsponsor investors, see “ Summary — The Offering — Expressions of Interest.” On June 30, 2025, our sponsor purchased, and the Company issued to the sponsor, 7,666,667 Class B ordinary shares (up to 1,000,000 of which are subject to forfeiture by the holders thereof depending on the extent to which the underwriters’ over -allotmentoption is exercised) for an aggregate purchase price of $25,000, or approximately $0.003 per share. The Class B ordinary 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. Because our sponsor acquired the Class B ordinary shares at a nominal price, our public shareholders will incur an immediate and substantial dilution upon the closing of this offering, assuming no value is ascribed to the warrants included in the units. In the case that additional Class A ordinary shares, or equity -linkedsecurities (as described herein), are issued or deemed issued in excess of the amounts issued in this offering and related