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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date
of earliest event reported): December 21, 2023
CLEAN EARTH ACQUISITIONS
CORP.
(Exact name of registrant as specified in its charter)
| Delaware |
|
000-1883984 |
|
87-1431377 |
(State
or other jurisdiction
of
incorporation) |
|
(Commission
File
Number) |
|
(IRS
Employer
Identification
No.) |
12600 Hill Country Blvd., Building R, Suite 275
Bee
Cave, Texas 78738
(Address of principal executive offices, including zip code)
(800) 508-1531
Registrant’s
telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities
registered pursuant to Section 12(b) of the Act:
| Title of each class |
|
Trading
Symbol(s) |
|
Name of each exchange on which
registered |
| Units, each consisting of one share of Class A common stock, $0.0001 par value per share, one right, and one-half of one redeemable warrant |
|
CLINU |
|
The Nasdaq Stock Market LLC |
| |
|
|
|
|
| Class A common stock included as part of the units, par value $0.0001 per share |
|
CLIN |
|
The Nasdaq Stock Market LLC |
| |
|
|
|
|
| Rights included as part of the units to acquire one-tenth (1/10) of one share of Class A common stock |
|
CLINR |
|
The Nasdaq Stock Market LLC |
| |
|
|
|
|
| Warrants included as part of the units, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share |
|
CLINW |
|
The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
If an emerging growth company, indicate by
check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
Item 7.01. Regulation FD Disclosure.
On
December 21, 2023, Clean Earth Acquisitions Corp., a Delaware corporation (“CLIN”), and Alternus Energy Group Plc, a
company incorporated under the laws of Ireland (“Alternus”), disclosed updated unaudited pro forma condensed consolidated
financial information as of and for the nine months ended September 30, 2023 and the year ended December 31, 2022 (the “Pro
Forma Financial Information”), in connection with the business combination previously approved by Clean Earth’s shareholders
as disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission on December 6, 2023.
The
Pro Forma Financial Information is set forth in Exhibit 99.1 hereto and is incorporated herein by reference.
Forward-Looking Statements
This Current Report on Form 8-K (this “Form 8-K”)
contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended (the “Securities
Act”), and section 21E of the Securities Exchange Act of 1934, as amended, that are based on beliefs and assumptions and on information
currently available to the Alternus and CLIN. Certain statements included in this Form 8-K that are not historical facts are forward-looking
statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking
statements are sometimes accompanied by words such as “believe,” “may,” “will,” “estimate,”
“continue,” “anticipate,” “intend,” “expect,” “should,” “would,”
“plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook”
and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking
statements include, but are not limited to, statements regarding Alternus’ growth, prospects and the market for solar parks and
other renewable power sources. These statements are based on various assumptions, whether or not identified in this Form 8-K, and
on the current expectations of the respective management teams of Alternus and CLIN and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an
investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances
are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of
Alternus and CLIN.
These forward-looking statements are subject to
a number of risks and uncertainties, including: the impact of reduction, modification or elimination of government subsidies and economic
incentives (including, but not limited to, with respect to solar parks); the impact of decreases in spot market prices for electricity;
dependence on acquisitions for growth in Alternus’ business; inherent risks relating to acquisitions and Alternus’ ability
to manage its growth and changing business; risks relating to developing and managing renewable solar projects; risks relating to photovoltaic
plant quality and performance; risks relating to planning permissions for solar parks and government regulation; Alternus’ need
for significant financial resources (including, but not limited to, for growth in its business); the need for financing in order to maintain
future profitability; the lack of any assurance or guarantee that Alternus can raise capital or meet its funding needs; Alternus’
limited operating history; risks relating to operating internationally, include currency risks and legal, compliance and execution risks
of operating internationally; the potential inability of the parties to successfully or timely consummate the proposed business combination;
the risk that any regulatory approvals are not obtained, are delayed or are subject to unanticipated conditions that could adversely affect
the combined company or the expected benefits of the proposed business combination; the approval of the stockholders of CLIN is not obtained;
the risk of failure to realize the anticipated benefits of the proposed business combination; the amount of redemption requests made by
CLIN’s stockholders exceeds expectations or current market norms; the ability of Alternus or the combined company to obtain equity
or other financing in connection with the proposed business combination or in the future; the outcome of any potential litigation, government
and regulatory proceedings, investigations and inquiries; the risk that the proposed business combination disrupts current plans and operations
as a result of the announcement and consummation of the transaction; costs related to the proposed business combination the effects of
inflation and changes in interest rates; an economic slowdown, recession or contraction of the global economy; a financial or liquidity
crisis; geopolitical factors, including, but not limited to, the Russian invasion of Ukraine; global supply chain concerns; the status
of debt and equity markets (including, market volatility and uncertainty); and other risks and uncertainties, including those risks to
be included under the heading “Risk Factors” in the definitive proxy statement filed by CLIN with the SEC on November 13,
2023 and also those included under the heading “Risk Factors” in CLIN’s final prospectus filed with the SEC on February 25,
2022 relating to its initial public offering, CLIN’s Annual Report on Form 10-K for the fiscal year ended December 31,
2022 filed with the SEC on March 30, 2023, and other documents filed, or to be filed, with the SEC by CLIN.
In light of the significant uncertainties in these
forward-looking statements, you should not regard these statements as a representation or warranty by Alternus, CLIN their respective
directors, officers, affiliates, advisers or employees (or any other person) that the Alternus and CLIN will achieve their objectives
and plans in any specified time frame, or at all. The forward-looking statements in this Form 8-K represent the views of the Alternus
and CLIN as of the date of this Form 8-K. Risks in addition to those set forth herein may also materialize or CLIN’s and Alternus’
assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There
may be additional risks that neither CLIN nor Alternus presently know, or that neither CLIN nor Alternus currently believe are immaterial,
that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements
reflect CLIN’s and Alternus’ expectations, plans or forecasts of future events and views as of the date of this Form 8-K.
CLIN and Alternus anticipate that subsequent events and developments will cause CLIN’s and Alternus’ assessments to change.
However, while CLIN and Alternus may elect to update these forward-looking statements at some point in the future, CLIN and Alternus specifically
disclaim any obligation to do so. Neither CLIN nor Alternus anticipate that subsequent events and developments will cause CLIN’s
and Alternus’ assessments to change. However, while CLIN and Alternus may elect to update these forward-looking statements at some
point in the future, CLIN and Alternus specifically disclaim any obligation to do so. These forward-looking statements should not be relied
upon as representing CLIN’s or Alternus’ assessments of any date subsequent to the date of this Form 8-K. Accordingly,
undue reliance should not be placed upon the forward-looking statements.
No Offer or Solicitation
This Current Report on Form 8-K is not a
proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the potential transaction
and does not constitute an offer to sell or a solicitation of an offer to buy any securities of CLIN or Alternus, nor shall there be any
sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of such state or jurisdiction. No offer of securities shall be made except by means of a prospectus
meeting the requirements of the Securities Act of 1933, as amended, or an exemption therefrom.
Additional Information About the Proposed
Business Combination and Where to Find It
CLIN has filed with the SEC on November 13,
2023 a definitive proxy statement in connection with the proposed business combination involving CLIN and Alternus pursuant to the Business
Combination Agreement by and among the parties (the “Business Combination Agreement”). STOCKHOLDERS OF CLIN AND OTHER INTERESTED
PERSONS ARE ADVISED TO READ THE DEFINITIVE PROXY STATEMENTS, ANY AMENDMENTS THERETO, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED OR
THAT WILL BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED BUSINESS COMBINATION BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION
ABOUT CLIN, ALTERNUS AND THE PROPOSED BUSINESS COMBINATION. STOCKHOLDERS OF CLIN CAN OBTAIN A COPY OF THE DEFINITIVE PROXY STATEMENT AND
OTHER DOCUMENTS FILED WITH THE SEC WITHOUT CHARGE, BY DIRECTING A REQUEST TO: CLEAN EARTH ACQUISITIONS CORP., ATTENTION: MARTHA ROSS,
CFO & COO, TELEPHONE: (800) 508-1531. THE DEFINITIVE PROXY STATEMENT, AND ANY OTHER RELEVANT DOCUMENTS, CAN ALSO BE OBTAINED,
WITHOUT CHARGE, AT THE SEC’S WEBSITE (WWW.SEC.GOV).
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| |
Clean Earth Acquisitions Corp. |
| |
|
|
| |
By: |
/s/ Aaron T. Ratner |
| |
|
Name: |
Aaron T. Ratner |
| |
|
Title: |
Chief Executive Officer |
| |
|
|
| Dated: December 21, 2023 |
|
|
Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED
COMBINED FINANCIAL INFORMATION
Defined terms included
below shall have the same meaning as terms defined and included (i) elsewhere in this Current Report on Form 8-K and (ii) in
Clean Earth Acquisition Corp.’s definitive proxy statement filed with the Securities and Exchange Commission on November 13,
2023.
The following
unaudited pro forma condensed combined financial statements are provided to aid you in your analysis of the financial aspects of the
Business Combination, the Material Events and the Significant Acquisitions (defined in the notes to the unaudited pro forma condensed
combined financial statements), which are referred to as the “Transactions”.
The unaudited
pro forma condensed combined financial statements are based on the Clean Earth historical financial statements and the Alternus historical
consolidated financial statements as adjusted to give effect to the Transactions and reflect a refinancing of Alternus’ Solis assets
in full. The unaudited pro forma condensed combined balance sheet gives pro forma effect to the Transactions as if they had been consummated
on September 30, 2023. The unaudited pro forma condensed combined statement of operations for the nine months ended September 30,
2023 and the year ended December 31, 2022 give effect to the Transactions as if they had occurred on January 1, 2022, which
is the beginning of the earliest period presented.
The unaudited
pro forma condensed combined financial statements were derived from and should be read in conjunction with:
| ● | the accompanying notes to the unaudited
pro forma condensed combined financial statements; |
| | | |
| ● | the historical unaudited condensed financial statements of Clean Earth as of
and for the nine months ended September 30, 2023 and the related notes; |
| | | |
| ● | the historical audited financial statements of Clean Earth as of December 31,
2022 and 2021, for the year ended December 31, 2022, and for the period from May 14, 2021 (inception)
through December 31, 2021 and the related notes; |
| | | |
| ● | the historical unaudited condensed consolidated financial statements of Alternus
as of and for the nine months ended September 30, 2023 and the related notes; |
| | | |
| ● | the historical audited consolidated financial statements of Alternus as of December 31,
2022 and 2021, and for the years ended December 31, 2022 and December 31, 2021 and the related notes; |
| | | |
| ● | the sections entitled “Clean Earth Management’s Discussion and
Analysis of Financial Condition and Results of Operations,” “Alternus Management’s
Discussion and Analysis of Financial Condition and Results of Operation,” and other financial information
relating to Clean Earth and Alternus. |
The
unaudited pro forma condensed combined financial information has been prepared based on actual redemptions of 6,419,831 shares of
Class A Common Stock, of which 5,351,009 shares were redeemed for a per share redemption price of $10.62, 1,046,600 shares were
redeemed for a per share redemption price of $10.74 and 22,222 shares were redeemed for a per share redemption price of $10.80 or
approximately $68.3 million in the aggregate. The unaudited pro forma condensed combined financial information also reflects
1,496,234 of newly issued shares of Class A Common Stock as per Subscription Agreement dated December 3rd 2023.
Additionally, the unaudited pro forma condensed combined financial information reflects the Forward Purchase Agreement dated
December 3rd 2023 which is comprised of the 1,300,320 shares of Class A Common Stock purchased by the Seller
from other shareholders, as well as the 1,496,234 issued shares of Class A Common Stock purchased under the Subscription
Agreement, for a total quantity of shares contemplated under the Forward Purchase Agreement of 2,796,554. Upon Closing, the Company
will fund a prepayment amount for the Forward Purchase Shares equal to $13.4 million, which is calculated as the total Prepayment
Amount of $30.0 million, less a Prepayment Shortfall of $0.5 million, and less the $16.1 million purchase price owed by the Seller
under the Subscription Agreement. The Company will also pay $1.1 million to the Seller as an inducement to enter into the Subscription
Agreement and Forward Purchase Agreement, which was calculated as the 100,000 shares purchased by Seller from other shareholders at
a purchase price of $10.74 per share.
On December 18, 2023, CLIN entered into a non-redemption agreement
(as it may be amended, supplemented or otherwise modified from time to time, the “NRA”) by and among CLIN, the Sponsor, and
the investor named therein (the “Investor”). Pursuant to the terms of the NRA, among other things, the Investor agreed to
withdraw redemptions in connection with the Business Combination on any Class A Common Stock, held by the Investor and to purchase additional
Class A Common Stock from redeeming stockholders of CLIN such that the Investor will be the holder of no fewer than 277,778 shares of
Class A Common Stock. In exchange, CLIN and the Sponsor will cause to be delivered to the Investor at the Closing an additional 277,778
founder shares, which such founder shares will reflect the same legends and be restricted in the same manner as then-applicable to the
Sponsor at the Closing. In addition, 2,300,000 shares were issued upon the automatic conversion of all 23,000,000 rights upon Closing.
The unaudited
pro forma condensed combined financial statements are provided for illustrative purposes only and are not necessarily indicative of what
the actual results of operations and financial position would have been had the Transactions taken place on the dates indicated, nor
are they indicative of the future consolidated results of operations or financial position of the combined company.
UNAUDITED PRO FORMA CONDENSED
COMBINED BALANCE SHEET AS OF
SEPTEMBER 30, 2023
(in thousands, except share
and per share information)
| | |
Historical | | |
| | |
| | |
| |
| |
| |
| | |
4(A)
Clean
Earth | | |
4(B)
Alternus | | |
4(C)
Carve-Out
Adjustments | | |
Alternus
Pro Forma | | |
4(D)
Material
events | |
| |
Transaction
Accounting
Adjustments | |
| |
Pro Forma
Balance
Sheet | |
| Assets | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | |
| |
| | |
| Current assets: | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | |
| |
| | |
| Cash and cash equivalents | |
$ | 9 | | |
$ | 3,886 | | |
$ | (523 | ) | |
$ | 3,363 | | |
$ | (1,269 | ) |
B | |
$ | (805 | ) |
4(d) | |
$ | 6,576 | |
| | |
| | | |
| | | |
| | | |
| | | |
| 2,205 | |
C | |
| (68,309 | ) |
4(i) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| 85,921 | |
4(e) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (14,539 | ) |
4(l) | |
| | |
| Accounts receivable, net | |
| - | | |
| 4,597 | | |
| (135 | ) | |
| 4,462 | | |
| (1,410 | ) |
B | |
| - | |
| |
| 3,052 | |
| Other receivable, net | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| 500 | |
4(l) | |
| 500 | |
| Marketable securities held in Trust Account | |
| 86,038 | | |
| - | | |
| - | | |
| - | | |
| 468 | |
A | |
| (85,921 | ) |
4(e) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (585 | ) |
4(c) | |
| | |
| Unbilled energy incentives earned | |
| - | | |
| 5,883 | | |
| - | | |
| 5,883 | | |
| | |
| |
| | |
| |
| 5,883 | |
| Prepaid expense and other current assets | |
| 259 | | |
| 6,144 | | |
| (1,032 | ) | |
| 5,112 | | |
| (2,211 | ) |
B | |
| (259 | ) |
4(g) | |
| 939 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (1,962 | ) |
4(h) | |
| | |
| Taxes recoverable | |
| - | | |
| 2,620 | | |
| (262 | ) | |
| 2,358 | | |
| (1,030 | ) |
B | |
| - | |
| |
| 1,328 | |
| Total current assets | |
| 86,306 | | |
| 23,130 | | |
| (1,952 | ) | |
| 21,178 | | |
| (3,247 | ) |
| |
| (85,959 | ) |
| |
| 18,278 | |
| Non-current assets: | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | |
| |
| | |
| Property and equipment, net | |
| - | | |
| 163,131 | | |
| 9,689 | | |
| 172,820 | | |
| (106,451 | ) |
B | |
| - | |
| |
| 66,369 | |
| Right of use asset | |
| - | | |
| 9,377 | | |
| (785 | ) | |
| 8,592 | | |
| (7,685 | ) |
B | |
| - | |
| |
| 907 | |
| Goodwill | |
| - | | |
| 1,743 | | |
| (578 | ) | |
| 1,165 | | |
| (1,165 | ) |
B | |
| - | |
| |
| - | |
| Restricted cash | |
| - | | |
| 5,027 | | |
| - | | |
| 5,027 | | |
| (43 | ) |
B | |
| - | |
| |
| 4,984 | |
| Capitalized development cost and other long-term assets | |
| - | | |
| 9,308 | | |
| (4,440 | ) | |
| 4,868 | | |
| (126 | ) |
B | |
| - | |
| |
| 4,742 | |
| Forward purchase agreement derivative asset | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| 17,125 | |
4(l) | |
| 17,125 | |
| Total Assets | |
$ | 86,306 | | |
$ | 211,716 | | |
$ | 1,934 | | |
$ | 213,650 | | |
$ | (118,717 | ) |
| |
$ | (68,834 | ) |
| |
$ | 112,405 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | |
| |
| | |
| Current liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | |
| |
| | |
| Accounts payable | |
$ | 171 | | |
$ | 11,854 | | |
$ | (3,190 | ) | |
$ | 8,664 | | |
$ | (4,435 | ) |
B | |
| 1,788 | |
4(h) | |
| 6,188 | |
| Accrued liabilities | |
| 689 | | |
| 22,521 | | |
| (13,951 | ) | |
| 8,570 | | |
| (7,234 | ) |
B | |
| 1,466 | |
4(f) | |
| 3,491 | |
| Income and franchise taxes payable | |
| 31 | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| - | |
| |
| 31 | |
| Accrued legal expenses | |
| 992 | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| - | |
| |
| 992 | |
| Taxes payable | |
| - | | |
| 1,200 | | |
| (451 | ) | |
| 749 | | |
| - | |
| |
| - | |
| |
| 749 | |
| Deferred income | |
| - | | |
| 5,883 | | |
| - | | |
| 5,883 | | |
| (377 | ) |
B | |
| - | |
| |
| 5,506 | |
| Rights of asset liability - short term | |
| - | | |
| 635 | | |
| (117 | ) | |
| 518 | | |
| - | |
| |
| - | |
| |
| 518 | |
| Green bonds, Convertible and non-convertible promissory notes, net | |
| - | | |
| 194,918 | | |
| (27,994 | ) | |
| 166,924 | | |
| (111,307 | ) |
B | |
| - | |
| |
| 55,617 | |
| Accrued offering costs | |
| 543 | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| - | |
| |
| 543 | |
| Promissory note – related party | |
| 1,704 | | |
| - | | |
| - | | |
| - | | |
| 468 | |
A | |
| (1,704 | ) |
4(k) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (468 | ) |
4(c) | |
| | |
| Deferred underwriter fee payable | |
| 805 | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| (805 | ) |
4(d) | |
| - | |
| Total current liabilities | |
| 4,935 | | |
| 237,011 | | |
| (45,703 | ) | |
| 191,308 | | |
| (122,885 | ) |
| |
| 277 | |
| |
| 73,635 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | |
| |
| | |
| Rights of asset liability - long term | |
| - | | |
| 8,710 | | |
| (670 | ) | |
| 8,040 | | |
| (7,190 | ) |
B | |
| - | |
| |
| 850 | |
| Convertible and non-convertible promissory notes, net | |
| - | | |
| 11,476 | | |
| (2,160 | ) | |
| 9,316 | | |
| (9,316 | ) |
B | |
| - | |
| |
| 2,205 | |
| | |
| | | |
| | | |
| | | |
| | | |
| 2,205 | |
C | |
| | |
| |
| | |
| Asset retirement obligations | |
| - | | |
| 1,534 | | |
| | | |
| 1,534 | | |
| (1,347 | ) |
B | |
| - | |
| |
| 187 | |
| Forward purchase agreement liability | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| - | |
4(l) | |
| - | |
| Total liabilities | |
$ | 4,935 | | |
$ | 258,731 | | |
$ | (48,533 | ) | |
$ | 210,198 | | |
$ | (138,533 | ) |
| |
$ | 277 | |
| |
$ | 76,877 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | |
| |
| | |
| Class A common stock subject to possible redemption; $0.0001 par value; 100,000,000 shares authorized; 8,147,563 shares issued and outstanding at redemption | |
| 86,038 | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| (72,073 | ) |
4(i) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (13,965 | ) |
4(l) | |
| | |
| Stockholders’ Equity | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| | |
| |
| | |
| CEAC Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | |
| - | | |
| - | | |
| - | | |
| - | | |
| | |
| |
| - | |
| |
| - | |
CEAC Class A common stock, $0.0001 par value, 100,000,000 shares authorized; 890,000shares issued and outstanding (excluding
23,000,000 shares subject to possible redemption) | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| - | |
| |
| - | |
| CEAC Class B common stock, $0.0001 par value, 10,000,000 shares authorized; 7,666,667 shares issued and outstanding | |
| 1 | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| (1 | ) |
4(b) | |
| - | |
| Alternus Clean Energy, Inc. Class A common stock | |
| - | | |
| - | | |
| - | | |
| - | | |
| - | |
| |
| 1 | |
4(b) | |
| 7 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| - | |
4(i) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| 6 | |
4(j) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| - | |
4(k) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| - | |
4(a) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| - | |
4(l) | |
| | |
| Common stock, $0.012 par value, 100,000,000 authorized and 26,365,738 issued and outstanding | |
| - | | |
| 305 | | |
| - | | |
| 305 | | |
| (116 | ) |
B | |
| (189 | ) |
4(j) | |
| - | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| - | |
4(l) | |
| | |
| Preferred stock | |
| - | | |
| - | | |
| - | | |
| - | | |
| 11,046 | |
B | |
| - | |
| |
| 11,046 | |
| Additional paid-in capital | |
| - | | |
| 52,006 | | |
| (51,179 | ) | |
| 827 | | |
| (656 | ) |
B | |
| (6,068 | ) |
4(j) | |
| 26,579 | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| 1,704 | |
4(k) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| 29,515 | |
4(l) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| 3,764 | |
4(i) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (259 | ) |
4(g) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (2,248 | ) |
4(h) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| - | |
4(a) | |
| | |
| Foreign Currency Translation Reserve | |
| - | | |
| (26 | ) | |
| (3,361 | ) | |
| (3,387 | ) | |
| 4,184 | |
B | |
| - | |
| |
| 797 | |
| Accumulated deficit | |
| (4,668 | ) | |
| (98,140 | ) | |
| 103,847 | | |
| 5,707 | | |
| 5,358 | |
B | |
| 6,251 | |
4(j) | |
| (2,901 | ) |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (1,466 | ) |
4(f) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (1,502 | ) |
4(h) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (117 | ) |
4(c) | |
| | |
| | |
| | | |
| | | |
| | | |
| | | |
| | |
| |
| (12,464 | ) |
4(l) | |
| | |
| Non-controlling interest | |
| - | | |
| (1,160 | ) | |
| 1,160 | | |
| - | | |
| - | |
| |
| - | |
| |
| - | |
| Total stockholders' equity (deficit) | |
| (4,667 | ) | |
| (47,015 | ) | |
| 50,467 | | |
| 3,452 | | |
| 19,816 | |
B | |
| 16,927 | |
| |
| 35,528 | |
| Total liabilities and stockholders' equity (deficit) | |
$ | 86,306 | | |
$ | 211,716 | | |
$ | 1,934 | | |
$ | 213,650 | | |
$ | (118,717 | ) |
| |
$ | (68,834 | ) |
| |
$ | 112,405 | |
UNAUDITED
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2023
(in thousands,
except share and per share amounts)
| | |
Historical | | |
| | |
| | |
| |
| | |
| | |
| | |
|
| | |
5(A)
Clean
Earth | | |
5(B)
Alternus | | |
5(C)
Carve-Out
Adjustments | | |
Autonomous
Entity
Adjustments | | |
| |
Alternus
Pro Forma | | |
5(E)
Material
events | | |
Transaction
Accounting
Adjustments | | |
| |
Pro Forma
Statement of
Operations | | |
|
| Revenues | |
$ | - | | |
$ | 27,799 | | |
$ | (480 | ) | |
$ | - | | |
| |
$ | 27,319 | | |
$ | (13,965 | ) | |
$ | - | | |
| |
$ | 13,354 | | |
|
| Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| |
| | | |
|
| Cost of revenues | |
| - | | |
| (6,545 | ) | |
| 30 | | |
| - | | |
| |
| (6,515 | ) | |
| 4,275 | | |
| - | | |
| |
| (2,240 | ) | |
|
| Franchise tax expense | |
| (150 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| |
| (150 | ) | |
|
| Bank fees | |
| (7 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| |
| (7 | ) | |
|
| Insurance expense | |
| (320 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| |
| (320 | ) | |
|
| Dues and subscriptions | |
| (169 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| |
| (169 | ) | |
|
| Marketing and advertising expenses | |
| (37 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| |
| (37 | ) | |
|
| Legal and accounting expenses | |
| (1,050 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| |
| (1,050 | ) | |
|
| Listing fee | |
| (53 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| |
| (53 | ) | |
|
| Selling, general and administrative | |
| - | | |
| (10,122 | ) | |
| 5,939 | | |
| (5,770 | ) | |
5(aa) | |
| (9,953 | ) | |
| - | | |
| - | | |
| |
| (9,953 | ) | |
|
| Development cost | |
| - | | |
| (1,223 | ) | |
| 1,051 | | |
| - | | |
| |
| (172 | ) | |
| - | | |
| - | | |
| |
| (172 | ) | |
|
| Depreciation, amortization, and accretion | |
| - | | |
| (5,586 | ) | |
| 174 | | |
| - | | |
| |
| (5,412 | ) | |
| 3,904 | | |
| - | | |
| |
| (1,508 | ) | |
|
| Total operating expenses | |
| (1,786 | ) | |
| (23,476 | ) | |
| 7,194 | | |
| (5,770 | ) | |
| |
| (22,052 | ) | |
| 8,179 | | |
| - | | |
| |
| (15,659 | ) | |
|
| Income (loss) from operations | |
| (1,786 | ) | |
| 4,323 | | |
| 6,714 | | |
| (5,770 | ) | |
| |
| 5,267 | | |
| (5,786 | ) | |
| - | | |
| |
| (2,305 | ) | |
|
| Interest expense | |
| - | | |
| (19,253 | ) | |
| 1,012 | | |
| 7,800 | | |
5(ab) | |
| (10,441 | ) | |
| 5,530 | | |
| - | | |
| |
| (4,911 | ) | |
|
| Other income | |
| - | | |
| 318 | | |
| (244 | ) | |
| 2,282 | | |
5(ac) | |
| 2,356 | | |
| - | | |
| - | | |
| |
| 2,356 | | |
|
| Dividend income on marketable securities held in Trust Account | |
| 4,216 | | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| (4,216 | ) | |
5(a) | |
| - | | |
|
| Realized gains on marketable securities held in Trust Account | |
| 1,663 | | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| (1,663 | ) | |
5(a) | |
| - | | |
|
| Other expenses | |
| - | | |
| (12,160 | ) | |
| 2,466 | | |
| 863 | | |
5(ad) | |
| (8,831 | ) | |
| 11,113 | | |
| - | | |
| |
| 2,282 | | |
|
| Total other expense | |
| 5,879 | | |
| (31,095 | ) | |
| 3,234 | | |
| 10,945 | | |
| |
| (16,916 | ) | |
| 16,643 | | |
| (5,879 | ) | |
| |
| (273 | ) | |
|
| | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| |
| | | |
|
| Net income (loss) before provision for income taxes | |
| 4,093 | | |
| (26,772 | ) | |
| 9,948 | | |
| 5,175 | | |
| |
| (11,649 | ) | |
| 10,857 | | |
| (5,879 | ) | |
| |
| (2,578 | ) | |
|
| Income taxes | |
| (854 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
5(d) | |
| (854 | ) | |
|
| Net income (loss) | |
$ | 3,239 | | |
$ | (26,772 | ) | |
$ | 9,948 | | |
$ | 5,175 | | |
| |
$ | (11,649 | ) | |
| 10,857 | | |
$ | (5,879 | ) | |
| |
$ | (3,432 | ) | |
|
| Net loss attributable to non-controlling interest | |
| | | |
$ | (660 | ) | |
$ | 660 | | |
| | | |
| |
| | | |
| | | |
| | | |
| |
| - | | |
|
| Net loss attributable to Alternus Energy Group / Alternus Clean Energy, Inc. | |
| | | |
$ | (26,112 | ) | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| |
$ | (3,432 | ) | |
|
| Basic and diluted net loss per share, non-redeemable Class A and Class B common stock | |
$ | (0.06 | ) | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| |
| | | |
|
| Basic and diluted weighted average shares outstanding, non-redeemable Class A and Class B common stock | |
| 8,556,667 | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| |
| | | |
|
| Basic and diluted net income (loss) per share, Class A common stock | |
$ | 0.23 | | |
$ | (0.99 | ) | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| |
$ | (0.05 | ) | |
|
| Basic and diluted weighted average shares outstanding, Class A common stock | |
| 16,036,220 | | |
| 26,325,738 | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| |
| 71,905,633 | | |
5(h) |
UNAUDITED
PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2022
(in thousands,
except share and per share amounts)
| | |
Historical | | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
|
| | |
5(A)
Clean
Earth | | |
5(B)
Alternus | | |
5(C)
Carve-Out
Adjustments | | |
Autonomous
Entity
Adjustments | | |
| |
5(D)
SIG Portfolio
acquired by
Solis | | |
Alternus
Pro Forma | | |
5(E)
Material
events | | |
Transaction
Accounting
Adjustments | | |
| |
Pro Forma
Statement of
Operations | | |
|
| Revenues | |
$ | - | | |
$ | 32,526 | | |
$ | (370 | ) | |
$ | - | | |
| |
$ | - | | |
$ | 32,156 | | |
$ | (18,421 | ) | |
$ | - | | |
| |
$ | 13,735 | | |
|
| Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
|
| Cost of revenues | |
| - | | |
| (9,224 | ) | |
| 80 | | |
| - | | |
| |
| - | | |
| (9,144 | ) | |
| 5,516 | | |
| - | | |
| |
| (3,628 | ) | |
|
| Franchise tax expense | |
| (200 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| - | | |
| |
| (200 | ) | |
|
| Bank fees | |
| (1 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| - | | |
| |
| (1 | ) | |
|
| Insurance expense | |
| (359 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| - | | |
| |
| (359 | ) | |
|
| Dues and subscriptions | |
| (204 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| - | | |
| |
| (204 | ) | |
|
| Marketing and advertising expenses | |
| (100 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| - | | |
| |
| (100 | ) | |
|
| Legal and accounting expenses | |
| (1,214 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| - | | |
| |
| (1,214 | ) | |
|
| Placement services fee | |
| (500 | ) | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| - | | |
| |
| (500 | ) | |
|
| Selling, general and administrative | |
| - | | |
| (11,139 | ) | |
| 7,070 | | |
| (4,373 | ) | |
5(aa) | |
| (38 | ) | |
| (8,480 | ) | |
| - | | |
| (1,466 | ) | |
5(b) | |
| (11,449 | ) | |
|
| | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| (1,502 | ) | |
5(c) | |
| | | |
|
| Development cost | |
| - | | |
| (23,925 | ) | |
| 22,649 | | |
| - | | |
| |
| - | | |
| (1,276 | ) | |
| 115 | | |
| - | | |
| |
| (1,161 | ) | |
|
| Depreciation, amortization, and accretion | |
| - | | |
| (7,157 | ) | |
| 137 | | |
| | | |
| |
| | | |
| (7,020 | ) | |
| 4,956 | | |
| - | | |
| |
| (2,064 | ) | |
|
| Total operating expenses | |
| (2,578 | ) | |
| (51,445 | ) | |
| 29,936 | | |
| (4,373 | ) | |
| |
| (38 | ) | |
| (25,920 | ) | |
| 10,587 | | |
| (2,968 | ) | |
| |
| (20,879 | ) | |
|
| Income (loss) from operations | |
| (2,578 | ) | |
| (18,919 | ) | |
| 29,566 | | |
| (4,373 | ) | |
| |
| (38 | ) | |
| 6,236 | | |
| (7,834 | ) | |
| (2,968 | ) | |
| |
| (7,145 | ) | |
|
| Interest expense | |
| - | | |
| (17,437 | ) | |
| 2,581 | | |
| (154 | ) | |
5(ab) | |
| - | | |
| (15,010 | ) | |
| 6,995 | | |
| (945 | ) | |
5(g) | |
| (9,077 | ) | |
|
| | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| (117 | ) | |
5(e) | |
| | | |
|
| Other income | |
| - | | |
| 1,275 | | |
| (3 | ) | |
| - | | |
| |
| - | | |
| 1,272 | | |
| (1,684 | ) | |
| - | | |
| |
| (412 | ) | |
|
| | |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
|
| Dividend income on marketable securities held in Trust Account | |
| 1,058 | | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| | | |
| (1,058 | ) | |
5(a) | |
| - | | |
|
| Realized gains on marketable securities held in Trust Account | |
| 2,228 | | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| | | |
| (2,228 | ) | |
5(a) | |
| - | | |
|
| Loss on disposal of asset | |
| - | | |
| (139 | ) | |
| 60 | | |
| - | | |
| |
| - | | |
| (79 | ) | |
| (3,049 | ) | |
| - | | |
| |
| (3,128 | ) | |
|
| Loss on issuance of derivative contract | |
| - | | |
| - | | |
| - | | |
| - | | |
| |
| - | | |
| - | | |
| - | | |
| (11,910 | ) | |
5(f) | |
| (11,910 | ) | |
|
| Other expenses | |
| - | | |
| (1,059 | ) | |
| 388 | | |
| - | | |
| |
| - | | |
| (671 | ) | |
| - | | |
| (554 | ) | |
5(f) | |
| (1,225 | ) | |
|
| Total other income | |
| 3,286 | | |
| (17,360 | ) | |
| 3,026 | | |
| (154 | ) | |
| |
| - | | |
| (14,488 | ) | |
| 2,262 | | |
| (16,812 | ) | |
| |
| (25,752 | ) | |
|
| Net income (loss) before provision for income taxes | |
| 708 | | |
| (36,279 | ) | |
| 32,592 | | |
| (4,527 | ) | |
| |
| (38 | ) | |
| (8,252 | ) | |
| (5,572 | ) | |
| (19,780 | ) | |
| |
| (32,897 | ) | |
|
| Income taxes | |
| (648 | ) | |
| (5 | ) | |
| - | | |
| - | | |
| |
| - | | |
| (5 | ) | |
| - | | |
| - | | |
5(d) | |
| (653 | ) | |
|
| Net income (loss) | |
$ | 60 | | |
$ | (36,284 | ) | |
$ | 32,592 | | |
$ | (4,527 | ) | |
| |
$ | (38 | ) | |
$ | (8,257 | ) | |
$ | (5,572 | ) | |
$ | (19,780 | ) | |
| |
$ | (33,550 | ) | |
|
| Net loss attributable to non-controlling interest | |
| | | |
| (484 | ) | |
| 484 | | |
| | | |
| |
| | | |
| - | | |
| | | |
| | | |
| |
| - | | |
|
| Net loss attributable to Alternus Energy Group / Alternus Clean Energy, Inc. | |
| | | |
$ | (35,800 | ) | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| |
$ | (33,550 | ) | |
|
| Basic and diluted net loss per share, non-redeemable Class A and Class B common stock | |
$ | (1.38 | ) | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
|
| Basic and diluted weighted average shares outstanding, non-redeemable Class A and Class B common stock | |
| 8,412,804 | | |
| | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| |
| | | |
|
| Basic and diluted net income (loss) per share, Class A common stock | |
$ | 0.60 | | |
$ | (1.36 | ) | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| |
$ | (0.47 | ) | |
|
| Basic and diluted weighted average shares outstanding, Class A common stock | |
| 19,282,192 | | |
| 26,360,231 | | |
| | | |
| | | |
| |
| | | |
| | | |
| | | |
| | | |
| |
| 71,905,633 | | |
5(h) |
NOTES
TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
| 1. | Description
of the Transactions |
Business
Combination Between Clean Earth Acquisitions Corp. and Alternus Energy Group Plc
On
October 12, 2022, Clean Earth and Alternus entered into the Business Combination Agreement, which is attached as Annex A. The business
combination between Clean Earth and Alternus is herein referred to as the “Business Combination.”
On
the Closing date, Alternus will transfer to Clean Earth, and Clean Earth received from Alternus, all issued and outstanding Alternus Interests in exchange
for the issuance and transfer by Clean Earth to Alternus at the Closing of 57,500,000 shares of common stock of Clean Earth. As a result,
the Acquired Subsidiaries (as defined in the Business Combination Agreement) will become direct wholly owned subsidiaries of Clean Earth and
Clean Earth will be controlled by Alternus.
Material
Events
The
Company extended the date by which the Company must consummate the Business Combination. Per the terms of the definitive proxy statement
filed in connection with the extension, the Clean Earth sponsor entity has offered to pay a principal amount of the lesser of: (i) $195,000
a month or (ii) $0.04 per share, on an incremental monthly basis, into the trust to finance the extension in exchange for a non-interest
bearing, unsecured promissory note payable upon consummation of a Business Combination. Following the Closing of the Business Combination,
the principal amount was repaid by the Company plus 25% of the principal amount.
| B. | Sale
of Netherlands, Poland and Italy entities |
Alternus
is in the final stages of negotiations with multiple parties to sell the operating assets in the Netherlands, Poland, and Italy. The
Company expects to execute definitive agreements by December 31st 2023. The Company believes that these transactions are probable
to occur, and the disclosure of pro forma financial information is considered material to investors.
| C. | Debt
issued in October 2023 |
In
October of 2023, Alternus approved the issuance by one of its US subsidiaries of secured debt in the principal amount
of $3.2 million for an original purchase price of $2.2 million and having a maturity date of no later than June 30, 2024. The
holder of the note has received warrants issued at the close of the business combination between the Company and Clean Earth
to purchase up to (i) 100,000 shares of common stock of Clean Earth at an exercise price of $11.50 per share and having a 5
year term, and (ii) 300,000 shares of common stock of Clean Earth at an exercise price of $0.01 per share and having a 3 year term.
The debt is secured by a parent company guarantee and a share pledge from Vincent Browne, Alternus’ CEO, of his Alternus shares.
Significant
Acquisitions
Alternus
acquired Solarpark Samas Sp. Z.O.O. on August 30, 2021 and Green Source Energy Beta Srl on April 22, 2021. Additionally, a
subsidiary of Alternus, Alternus Solis (“Solis”), acquired the Risen Portfolio on March 22, 2021 and related entities
within the SIG Portfolio in stages, which occurred on December 21, 2021 and March 22, 2022 (collectively referred to as the
“Significant Acquisitions”). As a result of these acquisitions Solarpark Samas Sp. Z.O.O, Green Source Energy Beta Srl, Risen
Portfolio and SIG Portfolio are wholly owned subsidiaries of Alternus.
The
unaudited pro forma combined condensed financial statements do not include adjustments related to acquisitions by Alternus that took
place in 2021 as the historical audited consolidated statement of operations of Alternus for the year ended December 31, 2022 reflects
the full period of the operations of these companies.
As
the historical audited consolidated statement of operations of Alternus for the year ended December 31, 2022 does not reflect the
operations of the SIG Portfolio acquired on March 22, 2022 for the full period presented, a pro forma adjustment was added to include
the historical information for the period from January 1, 2022 through the date of acquisition, March 22, 2022.
The
Business Combination and Significant Acquisitions are collectively referred to as the “Transactions.”
Forward
Purchase Agreement
On
December 3, 2023, CLIN entered into an agreement with (i) Meteora Capital Partners, LP (“MCP”), (ii) Meteora
Select Trading Opportunities Master, LP (“MSTO”), and (iii) Meteora Strategic Capital, LLC (“MSC” and, collectively
with MCP and MSTO, “Seller”) (the “Forward Purchase Agreement”) for OTC Equity Prepaid Forward Transactions.
For purposes of the Forward Purchase Agreement, CLIN is referred to as the “Counterparty” prior to the consummation of the
Business Combination, while Alternus Clean Energy, Inc. (“Pubco”) is referred to as the “Counterparty” after
the consummation of the Business Combination. The purpose of the Forward Purchase Transaction is to decrease the amount of redemptions
in connection with the Special Meeting and potentially increase the working capital available to Alternus following the Closing. Capitalized
terms used herein but not otherwise defined shall have the meanings ascribed to such terms in the Forward Purchase Agreement.
Pursuant
to the terms of the Forward Purchase Agreement, Meteora intends, but is not obligated, to purchase up to 2,796,554 (the “Purchased
Amount”) Class A ordinary shares, par value $0.0001 per share, of CLIN (“CLIN Shares”) concurrently with the Closing
pursuant to Seller’s FPA Funding Amount PIPE Subscription Agreement (as defined below), less the number of CLIN Shares purchased
by Seller separately from third parties through a broker in the open market (“Recycled Shares”). Seller will not be required
to purchase an amount of CLIN Shares such that, following such purchase, that Seller’s ownership would exceed 9.9% of the total
CLIN Shares outstanding immediately after giving effect to such purchase, unless Seller, at its sole discretion, waives such 9.9% ownership
limitation. The Number of Shares subject to the Forward Purchase Agreement is subject to reduction following a termination of the Forward
Purchase Agreement with respect to such shares as described under “Optional Early Termination” in the Forward Purchase Agreement.
The
Forward Purchase Agreement provides for a prepayment shortfall in an amount in U.S. dollars equal to $1,000,000. As described below in
Shortfall Sales, Seller in its sole discretion may sell Recycled Shares at any time following the Trade Date at prices (i) at or
above $10.00 during the first three months following the Closing Date and (ii) at any sales price thereafter, without payment by
Seller of any Early Termination Obligation until such time as the proceeds from such sales equal 100% of the Prepayment Shortfall (as
set forth under Shortfall Sales below) (such sales, “Shortfall Sales,” and such Shares, “Shortfall Sale Shares”).
A sale of Shares is only (a) a “Shortfall Sale,” subject to the terms and conditions herein applicable to Shortfall
Sale Shares, when a Shortfall Sale Notice is delivered under the Forward Purchase Agreement, and (b) an Optional Early Termination,
subject to the terms and conditions of the Forward Purchase Agreement applicable to Terminated Shares, when an OET Notice is delivered
under the Forward Purchase Agreement, in each case with the delivery of such notice being in the sole discretion of Seller (as further
described in the “Optional Early Termination” and “Shortfall Sales” sections in the Forward Purchase Agreement).
Following
the Closing, the reset price (the “Reset Price”) will be $10.00. The Reset Price will be subject to reduction upon a Dilutive
Offering Reset immediately upon the occurrence of such Dilutive Offering.
| 2. | Basis
of Pro Forma Presentation |
The
unaudited pro forma condensed combined financial statements were prepared in accordance with Article 11 of SEC Regulation S-X, as
amended by the final rule, Release No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses.
Release No. 33-10786 replaced the previous pro forma adjustment criteria with simplified requirements to depict the accounting for
the Transactions (“Transactions Accounting Adjustments”), reflect incremental expense or other changes necessary to present
the financial position and results of operations as if an entity was a separate stand-alone entity (“Autonomous Entity Adjustments”)
and present the reasonably estimable synergies and other Transactions effects that have occurred or are reasonably expected to occur
(“Management’s Adjustments”). Management has elected not to present Management’s Adjustments and will only be
presenting Transactions Accounting Adjustments in the unaudited pro forma condensed combined financial information. The adjustments presented
in the unaudited pro forma condensed combined financial statements have been identified and presented to provide relevant information
necessary for an understanding of the combined company reflecting the Transactions.
The
unaudited pro forma condensed combined financial statements are based on the Clean Earth historical financial statements and the Alternus
historical consolidated financial statements as adjusted to give effect to the Transactions and reflect a refinancing of Alternus’
Solis assets in full. The unaudited pro forma condensed combined balance sheet gives pro forma effect to the Transactions as if they
had been consummated on September 30, 2023. The unaudited pro forma condensed combined statement of operations for the nine months
ended September 30, 2023 and the year ended December 31, 2022 give effect to the Transactions as if they had occurred on January 1,
2022, which is the beginning of the earliest period presented.
Carve-Out
Adjustments
Pursuant
to the Business Combination Agreement, Alternus will contribute interests in the Acquired Subsidiaries to Clean Earth. The
historical consolidated financial statements of Alternus are inclusive of the “Excluded Companies” (as defined in
the Business Combination Agreement), which will not be acquired as part of the Business Combination. As such, the carve-out adjustments
are presented to exclude these legal entities from the unaudited pro forma condensed combined financial statements of the combined
company.
Autonomous
Entity Adjustments
Autonomous
entity adjustments, based on contractual agreements related to the carve-out, are reflected in the unaudited pro forma condensed combined
statements of operations to present the Acquired Subsidiaries as if they had been operated as a standalone entity for the nine months
ended September 30, 2023 and the year ended December 31, 2022.
Significant
Acquisitions
The
Significant Acquisitions were determined to meet the definition of a business in accordance with Regulation S-X, Rule 11-02(d) and
trigger the reporting requirements pursuant to Regulation S-X, Rule 3-05 due to their significance. However, the Significant Acquisitions
do not meet the definition of businesses and are considered asset acquisitions pursuant to ASC 805, Business Combinations. The
historical audited consolidated balance sheet and statement of operations of Alternus as of and for the year ended December 31,
2022 reflects the full period of the operations of the significant acquisitions that took place in 2021. Therefore, no adjustments are
required in the unaudited pro forma condensed combined financial information. As the historical audited consolidated statement of operations
of Alternus for the year ended December 31, 2022 does not reflect the operations of the SIG Portfolio acquired on March 22,
2022 for the full period presented, a pro forma adjustment was added to include the historical information for the period from January 1,
2022 through the date of acquisition, March 22, 2022.
Management
has made significant estimates and assumptions in its determination of the pro forma adjustments. The pro forma adjustments reflecting
the Transactions are based on certain currently available information and certain assumptions and methodologies that management believes
are reasonable under the circumstances. The pro forma adjustments, which are described in the accompanying notes, may be revised as additional
information becomes available and is evaluated. Therefore, it is likely that the actual adjustments will differ from the pro forma adjustments,
and it is possible the differences may be material. Management believes that its assumptions and methodologies provide a reasonable basis
for presenting all of the significant effects of the Transactions based on information available at this time and that the pro forma
adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma condensed combined financial
statements.
The
unaudited pro forma condensed combined financial statements do not give effect to any anticipated synergies, operating efficiencies,
tax savings, or cost savings that may be associated with the Business Combination. Clean Earth and Alternus did not have any historical
relationship prior to the Business Combination. Accordingly, no pro forma adjustments were required to eliminate activities between the
companies.
The
unaudited pro forma combined condensed financial statements do not include adjustments related to the following acquisitions by Alternus:
| ● | KKSOL
S.R.L., acquired on February 15, 2021, |
| | | |
| ● | Petriolo Fotovoltaica S.R.L,
acquired on March 15, 2021, |
| | | |
| ● | Serre S.R.L., acquired on March 19,
2021, |
| | | |
| ● | Unisun, acquired on April 16,
2021, |
| ● | BIMA
S.R.L., acquired on May 28, 2021, |
| | | |
| ● | MABI S.R.L., acquired on May 28,
2021, |
The
historical audited consolidated Balance Sheet and Statement of Operations of Alternus as of and for the year ended December 31,
2022, reflects the full period of the operations of the significant acquisitions that took place in 2021.
The
unaudited pro forma condensed combined financial information has been prepared based on actual redemptions of 6,419,831 shares of
Class A Common Stock, of which 5,351,009 shares were redeemed for a per share redemption price of $10.62, 1,046,600 shares were
redeemed for a per share redemption price of $10.74 and 22,222 shares were redeemed for a per share redemption price of $10.80 or
approximately $68.3 million in the aggregate. The unaudited pro forma condensed combined financial information also reflects
1,496,234 of newly issued shares of Class A Common Stock as per Subscription Agreement dated December 3rd 2023.
Additionally, the unaudited pro forma condensed combined financial information reflects the Forward Purchase Agreement dated
December 3rd, 2023, which is comprised of the 1,300,320 shares of Class A Common Stock purchased by the Seller
from other shareholders, as well as the 1,496,234 issued shares of Class A Common Stock purchased under the Subscription
Agreement, for a total quantity of shares contemplated under the Forward Purchase Agreement of 2,796,554. Upon Closing, the Company
will fund a prepayment amount for the Forward Purchase Shares equal to $13.4 million, which is calculated as the total Prepayment
Amount of $30.0 million, less a Prepayment Shortfall of $0.5 million, and less the $16.1 million purchase price owed by the Seller
under the Subscription Agreement. The Company will also pay $1.1 million to the Seller as an inducement to enter into the Subscription
Agreement and Forward Purchase Agreement, which was calculated as the 100,000 shares purchased by Seller from other shareholders at
a purchase price of $10.74 per share.
On December 18, 2023, CLIN entered into a non-redemption agreement
(as it may be amended, supplemented or otherwise modified from time to time, the “NRA”) by and among CLIN, the Sponsor, and
the investor named therein (the “Investor”). Pursuant to the terms of the NRA, among other things, the Investor agreed to
withdraw redemptions in connection with the Business Combination on any Class A Common Stock, held by the Investor and to purchase additional
Class A Common Stock from redeeming stockholders of CLIN such that the Investor will be the holder of no fewer than 277,778 shares of
Class A Common Stock. In exchange, CLIN and the Sponsor will cause to be delivered to the Investor at the Closing an additional 277,778
founder shares, which such founder shares will reflect the same legends and be restricted in the same manner as then-applicable to the
Sponsor at the Closing. In addition, 2,300,000 shares were issued upon the automatic conversion of all 23,000,000 rights upon Closing.
Upon
closing of the Business Combination, shares outstanding as presented in the unaudited pro forma condensed combined financial statements
will include the following:
| | |
Shares | | |
% | |
| Alternus Clean Energy, Inc. Class A common stock owned by the Sponsors | |
| 8,781,667 | | |
| 12 | % |
| Alternus Clean Energy, Inc. Class A common stock owned by public stockholders (1) | |
| 2,827,412 | | |
| 4 | % |
| Class A common stock owned by Meteora parties subject to FPA (2) | |
| 2,796,554 | | |
| 4 | % |
| Issuance of Alternus Clean Energy, Inc. Class A common stock to Alternus in connection with Business Combination | |
| 57,500,000 | | |
| 80 | % |
| Total numbers of shares | |
| 71,905,633 | | |
| 100 | % |
| (1) | Includes (i) 2,300,000 shares which were issued at Closing,
and (ii) 100,000 shares held by the Meteora parties as public stockholders. |
| (2) | Excludes 100,000 shares held by the Meteora parties as public
stockholders. |
The
presentation of the share ownership in the table above does not include (a) shares issuable on exercise of warrants to purchase
11,945,000 shares of Class A common stock (consisting of 11,500,000 public warrants and 445,000 private warrants issued to the Sponsor),
which will remain outstanding immediately following the Business Combination, (b) the issuance of any shares upon completion of
the business combination under the 2023 Equity Incentive Plan, (c) shares issuable on exercise of warrants to purchase (i) 100,000
shares of Class A common stock at an exercise price of $11.50 per share and (ii) 300,000 shares of Class A common stock
at an exercise price of $0.01, (iii) 150,000 shares of Class A common stock at an exercise price of $0.01 per share, and (iv) 250,000
Class A common stock at an exercise price of $0.01 per share, the issuance of such warrants conditioned upon, and only issued upon,
the close of the Business Combination, and (d) beginning 90 days after the close of the Business Combination, the potential issuance
of 1,320,000 shares of Class A common stock pursuant to the terms of the First Note, which may only be issued upon the exercise
of the holder of such note’s option to convert the full principal balance of such note and any accrued but unpaid interests thereon,
the terms of which are more fully described in Clean Earth’s definitive proxy statement filed on November 13, 2023, under
the subsection entitled “Alternus’ Management’s Discussion and Analysis of Financial Condition and Results of Operations
Liquidity and Capital Resources — Financing Activities”
The
unaudited pro forma condensed combined financial statements are provided for illustrative purposes only and are not necessarily indicative
of what the actual results of operations and financial position would have been had the Transactions taken place on the dates indicated,
nor are they indicative of the future consolidated results of operations or financial position of the combined company.
| 3. | Accounting
for the Business Combination |
Notwithstanding
the legal form, the Business Combination will be accounted for as a reverse acquisition in accordance with U.S. generally accepted accounting
principles (“U.S. GAAP”). Under this method of accounting, Clean Earth was treated as the acquired company for financial
reporting purposes, whereas Alternus was treated as the accounting acquiror. In accordance with this accounting method, the Business
Combination was treated as the equivalent of Alternus issuing stock for the net assets of Clean Earth, accompanied by a recapitalization.
The net assets of Alternus were stated at historical cost, with no goodwill or other intangible assets recorded, and operations prior
to the Business Combination were those of Alternus. Alternus has been determined to be the accounting acquiror for purposes of the Business
Combination based on an evaluation of the following facts and circumstances:
| ● | Persons
affiliated with Alternus control a majority of the governing body of the combined company; |
| | | |
| ● | Operations of Alternus
prior to the Business Combination comprise the ongoing operations of the combined company;
and |
| | | |
| ● | Existing senior management
team of Alternus comprise the senior management team of the combined company. |
| 4. | Adjustments
to Unaudited Pro Forma Condensed Combined Balance Sheet |
The
pro forma notes and adjustments, based on preliminary estimates that could change materially as additional information is obtained, are
as follows:
Pro
forma notes
| (A) | Derived
from the unaudited balance sheet of Clean Earth as of September 30, 2023. |
| (B) | Derived
from the unaudited consolidated balance sheet of Alternus as of September 30, 2023. |
| (C) | The
historical consolidated financial statements of Alternus are inclusive of the Excluded Companies
that will not be contributed as part of the Business Combination. The carve-out adjustments
are presented to exclude these entities. The information was derived from the combined balance
sheets of the Excluded Companies, which was obtained from the accounting records of Alternus. |
| (D) | Represents
Material Events: |
| A. | Represents
an adjustment to reflect the non-interest bearing, unsecured promissory note payable upon
consummation of a Business Combination of $468,000 related to the Extension Financing. |
| | | |
| B. | The
historical consolidated financial statements of Alternus are inclusive of Netherlands,
Poland and Italy entities subject to sale. The adjustments are
presented to exclude these entities. The information was derived from the combined balance
sheets of the Netherlands, Poland and Italy entities,
which were obtained from the accounting records of Alternus. |
| | | |
| C. | Represents an adjustment
to reflect the accounting at inception for the non-interest bearing secured debt in the principal
amount of $3,150,000 net of debt discount of $945,000 and having a maturity date of no later
than June 30, 2024. See Note 5(g) for the Condensed Combined Statements of Operations
impact. |
Transactions
Accounting Adjustments
| a) | To
reflect the conversion of 23,000,000 Rights to 2,300,000 shares of Alternus Clean Energy, Inc.
Class A common stock upon consummation of the Business Combination. Each holder of a
Right received one-tenth (1/10) of one share of Class A common stock upon Closing. The
conversion has been recorded as increase to common stock and decrease to additional paid-in
capital of $230. |
| | | |
| b) | To reflect the reclassification
of Clean Earth Class B common stock to Clean Earth Class A common stock. Clean
Earth Class A common stock subsequently converted into Alternus Clean Energy, Inc.
Class A common stock. See Note 4(k). |
| | | |
| c) | To reflect the repayment
at Closing of the promissory note of $468,000 plus 25% of the principal amount of $117,000
recorded as a loss on extinguishment of debt in accumulated deficit. See Note 5(e). |
| | | |
| d) | To reflect the payment of
Clean Earth’s deferred underwriting fee payable of $0.8 million, which is related to
costs incurred in connection with the Clean Earth initial public offering and is payable
upon completion of the Business Combination. The assumed payment of $0.8 million has been
recorded as a reduction of $0.8 million of deferred underwriting fee payable. |
| | | |
| e) | To reflect the release of
investments from the trust account to cash and cash equivalents. |
| | | |
| f) | To reflect the accrual for
$1.5 million of Clean Earth’s additional closing transaction costs that are not yet incurred and paid as of September 30, 2023 and that are directly attributable to the Business Combination and are non-recurring
items. The accrual of $1.5 million of additional transaction costs has been recorded as an
increase to accumulated deficit (see Note 5(b)). Clean Earth will pay these transaction costs
within twelve months after the consummation of the Business Combination. These transaction
costs are preliminary estimates; the final amounts and the resulting effect on New Alternus’s
financial position and results of operations may differ significantly. |
| | | |
| g) | To reflect the reclassification
of deferred transaction costs of $0.3 million that are deemed to be direct and incremental
costs of the Business Combination from prepaid expenses and other current assets to additional
paid-in capital. Note Clean Earth will pay amount of accrued liabilities of $0.7 million,
accrued offering costs of $0.5 million, accounts payable of $0.2 million, accrued legal expenses
of $1.0 million within twelve months after the consummation of the Business Combination.
These transaction costs are preliminary estimates; the final amounts and the resulting effect
on New Alternus’s financial position and results of operations may differ significantly. |
| | | |
| h) | To reflect the accrual of
Alternus estimated additional advisory, legal, accounting and auditing fees and other professional
fees of $1.8 million in addition to the transaction costs of $1.4 million accrued in the
accounting records of Alternus as of September 30, 2023, of which $0.3 million that
are deemed to be direct and incremental costs have been recorded as a reduction to additional
paid-in capital and $1.5 million that are not direct and incremental expenses of the Business
Combination have been recorded as an expense. Company’s total transaction cost of $3.2
million will be paid within twelve months after the consummation of the Business Combination.
Prepaid expenses and other current assets balance of $2.0 million has been reclassified to
additional paid-in capital. See Note 5(c). These transaction costs are preliminary estimates;
the final amounts and the resulting effect on New Alternus’s financial position and
results of operations may differ significantly. |
| | | |
| i) | To reflect the redemption of 6,419,831 shares of Class A Common Stock, of which 5,351,009 shares were redeemed for a per share redemption
price of $10.62, 1,046,600 shares were redeemed for a per share redemption price of $10.74 and 22,222 shares were redeemed for a per share
redemption price of $10.80, or approximately $68.3 million in the aggregate. This also reflects the reclassification of 427,412 non-redeemed
shares from equity subject to possible redemption to permanent equity. |
| | | |
| j) | To reflect the recapitalization
of Alternus through the contribution of all outstanding common stock and preferred stock
of Acquired Subsidiaries to Clean Earth and the issuance of 57,500,000 shares of Clean Earth
Class A common stock and the elimination of the accumulated deficit of Clean Earth,
the accounting acquiree. As a result of the recapitalization, Alternus common stock of $0.1
million and Clean Earth accumulated deficit of $6.3 million were derecognized. The shares
of Clean Earth common stock issued in exchange for Alternus Clean Energy, Inc. equity
were recorded as increase to common stock of $6 thousand and decrease to additional paid-in
capital amounting to $6.1 million. |
| k) | To
reflect the conversion of Clean Earth convertible promissory note to 225,000 shares of Class A
common stock. |
| | | |
| |
l) |
To reflect the fair value of the Prepaid Forward Purchase
Agreement Asset in amount of $17.1 million, as well as the $14.5 million payment from the Company to the Seller, comprised of the
$30.0 million Prepayment Amount, less the $0.5 million Prepayment Shortfall, less the $16.1 million Subscription Agreement purchase
price due from Seller, and plus 100,000 shares or approximately $1.1 million in Share Consideration reimbursement that was recorded
as decrease of $0.5 million to additional paid in capital and decrease of $0.6 million to the retained earnings. This transaction
resulted in a loss of $11.9 million recorded in accumulated deficit. Therefore, the total impact recorded in retained earnings
amounts to $12.5 million. The value of the Prepaid Forward Purchase Agreement Assets was calculated using a Monte Carlo
multi-scenario model. The valuation of the Forward Purchase Agreement derivative was prepared as if it was entered into on December
4, 2023 and the principal assumptions of the valuation are as follows: underlying share price of $6.88, volatility of 75%;
risk-free rate of 4.4%; and the contractual period of three years. |
| 5. | Adjustments
to Unaudited Pro Forma Condensed Combined Statements of Operations |
The
pro forma notes and adjustments, based on preliminary estimates that could change materially as additional information is obtained, are
as follows:
Pro
forma notes
| (A) | Derived
from the unaudited statement of operations of Clean Earth for the nine months ended September 30,
2023 and the audited statement of operations of Clean Earth for the year ended December 31,
2023. |
| (B) | Derived
from the unaudited consolidated statement of operations of Alternus for the nine months ended
September 30, 2023 and the audited consolidated statement of operations of Alternus
for the year ended December 31, 2023. |
| (C) | The
historical consolidated financial statements of Alternus are inclusive of the Excluded Companies
that will not be contributed as part of the Business Combination. The carve-out adjustments
are presented to exclude these entities. This information was derived from the accounting
records of Alternus and represents the combined statements of operations of the Excluded
Companies. |
| (D) | As
the consolidated statement of operations of Alternus for the year ended December 31,
2022 do not reflect the operations of the SIG Portfolio acquired by Solis for the full period
presented, the following table presents the pro forma impact to include the historical information
for the period from January 1, 2022 through the date of acquisition. This information
was derived from the pre-acquisition accounting records of the SIG Portfolio. |
| | |
Period from
January 1 to
March 22, 2022 | |
| | |
SIG Portfolio
acquired by
Solis | |
| Selling, general and administrative | |
$ | (38 | ) |
| Total Operating Expenses | |
| (38 | ) |
| Income (loss) from operations | |
| (38 | ) |
| Net income (loss) before provision for income taxes | |
| (38 | ) |
| Net income (loss) | |
$ | (38 | ) |
| (E) | The
historical consolidated financial statements of Alternus are inclusive of Netherlands,
Poland and Italy entities subject to sale. The adjustments are
presented to exclude these entities. This information was derived from the accounting records
of Alternus and represents the combined statements of operations of the Excluded Companies. |
Autonomous
Entity Adjustments
| aa) | The consolidated financial
statements of Alternus include certain selling and administrative expenses included within
the accounting records of the Excluded Entities. The unaudited pro forma condensed combined
statements of operations include carve-out adjustments to remove the results of operations
of the Excluded Companies (refer to Note 5(C)). As such, this adjustment is to reflect selling
and administrative expenses that the Acquired Subsidiaries will incur as a standalone company,
such as payroll and bonus expenses, consulting, legal, audit and other professional fees. |
| ab) | To reflect interest
expense on $1.8 million secured note which will be settled at the end of 2023. Prior to the
Business Combination the interest expense was reflected on the parent’s accounting
records that were not acquired in the Business Combination. The secured note survived the
business combination and will be reflected on the Acquired Subsidiaries accounting records. |
| ac) | The consolidated financial statements of Alternus include certain other expenses included within the accounting records of the Excluded
Entities. The unaudited pro forma condensed combined statements of operations include carve-out adjustments to remove the results of operations
of the Excluded Companies (refer to Note 5(C)). As such, this adjustment is to reflect former intercompany balances that the Acquired
Subsidiaries will be forgiven as a standalone company. |
| |
ad) |
The consolidated financial statements of Alternus include
certain other expenses included within the accounting records of the Excluded Entities. The unaudited pro forma condensed combined statements
of operations include carve-out adjustments to remove the results of operations of the Excluded Companies (refer to Note 5(C)). As such,
this adjustment is to reflect other expenses that the Acquired Subsidiaries will incur as a standalone company. |
Transactions
Accounting Adjustments
| a) | To
reflect an adjustment to eliminate interest and dividend income earned on investments held
in the trust account as if the Business Combination had occurred on January 1, 2022. |
| | | |
| b) | To reflect non-recurring
transaction closing costs not yet incurred and paid as of September 30, 2023 of $1.5 million within general and administrative
expense of Clean Earth that are considered direct and incremental expenses. See Note 4(f). |
| | | |
| c) | To reflect non-recurring
transaction costs of $1.5 million within general and administrative expense of Alternus that
are not considered direct and incremental expenses. See Note 4(h). |
| | | |
| d) | Alternus Clean Energy, Inc.
does not recognize current or deferred tax expense upon consummation of the transaction.
The historical Alternus current tax expense is related to foreign jurisdictions, in which,
there will be no impact from the transaction. The U.S. deferred tax balances are offset by
a full valuation allowance. Therefore, no income tax provision impact related to the transaction
accounting adjustments is reflected. |
| | | |
| e) | To reflect the non-recurring
expense of $117,000 as a loss on extinguishment of debt in interest expense. See Note 4(c). |
| | | |
| f) | To reflect loss of $11.9
million related to the Forward Purchase Agreement and also reflect loss of $0.6 million from
Share Consideration reimbursement. See Note 4(l). |
| | | |
| g) | To reflect amortization of
debt discount related the non-interest bearing secured debt in the principal amount of $3,150,000
or an original purchase price of $2,205,000 and having a maturity date of no later than June 30,
2024. |
| | | |
| h) | The pro forma basic and diluted
net loss per share amounts presented in the unaudited pro forma condensed combined statements
of operations are based upon the number of Alternus Clean Energy, Inc. shares outstanding
as if the Transactions occurred on January 1, 2022. The calculation of weighted average
shares outstanding for pro forma basic and diluted net loss per share assumes that the shares
issuable in connection with the Business Combination have been outstanding for the entirety
of the periods presented. |
Pro
forma weighted-average common shares outstanding — basic and diluted is calculated as follows:
| | |
Shares | | |
% | |
| Weighted-average shares calculation - basic and diluted | |
| | | |
| | |
| Alternus Clean Energy, Inc. Class A common stock owned by the Sponsors | |
| 8,781,667 | | |
| 12 | % |
| Alternus Clean Energy, Inc. Class A common stock owned by public stockholders (1) | |
| 2,827,412 | | |
| 4 | % |
| Class A common stock owned by Meteora parties subject to FPA (2) | |
| 2,796,554 | | |
| 4 | % |
| Issuance of Alternus Clean Energy, Inc. Class A common stock to Alternus stockholders in connection with Business Combination | |
| 57,500,000 | | |
| 80 | % |
| Pro forma weighted-average shares outstanding—basic and diluted | |
| 71,905,633 | | |
| 100 | % |
| Net loss attributable to Alternus Clean Energy, Inc. for the nine months ended September 30, 2023 | |
$ | (3,432 | ) | |
| | |
| Basic and diluted net loss per share for the nine months ended September 30, 2023, Class A common stock | |
$ | (0.05 | ) | |
| | |
| Net loss attributable to Alternus Clean Energy, Inc. for the year ended December 31, 2022 | |
$ | (33,550 | ) | |
| | |
| Basic and diluted net loss per share for the year ended December 31, 2022, Class A common stock | |
$ | (0.47 | ) | |
| | |
| (1) | Includes (i) 2,300,000 shares which were issued at Closing,
and (ii) 100,000 shares held by the Meteora parties as public stockholders. |
| (2) | Excludes 100,000 shares held by the Meteora parties as public
stockholders. |
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