Alternus Clean Energy, Inc. (NASDAQ:ALCE), a Delaware-incorporated provider of electric and other services, disclosed the termination of a significant agreement and the creation of a new financial obligation in a recent 8-K filing with the SEC. The company's stock, currently trading at $0.75, has experienced significant pressure, dropping over 92% in the past six months.
On Monday, December 31, 2024, Alternus Clean Energy entered into a Mutual Termination Agreement with Meteora Capital Partners (WA:CPAP), LP, Meteora Select Trading Opportunities Master, LP, and Meteora Strategic Capital, LLC, collectively referred to as the Seller.
This agreement effectively terminated a previous Forward Purchase Agreement dated December 3, 2024. The termination clears all obligations between the Company and the Seller except for certain indemnification and securities contract provisions which remain effective. According to InvestingPro, the company's Financial Health score is rated as WEAK, with comprehensive analysis available to subscribers.
As part of the termination, Alternus Clean Energy issued a Promissory Note to the Seller on the same day. The Note is valued at $500,000, carries a 10% annual interest rate, and is due by January 31, 2026. The Company retains the option to prepay the Note at any time without incurring penalties.
In a separate event, the Company announced the departure of Ms. Gita Shah from her position as Chief Sustainability Officer, effective immediately on December 31, 2024. The departure was not due to any disagreement with the Company's operations, policies, or practices.
In other recent news, Alternus Clean Energy has made significant strides in its operations. The renewable energy company recently acquired advanced energy storage solution provider, LiiON, for $5 million, a move aimed at strengthening its capabilities in the renewable energy sector. The acquisition is expected to increase Alternus shareholder equity by approximately $3 million.
In a bid to meet Nasdaq's minimum bid price requirement, Alternus enacted a 1-for-25 reverse stock split, reducing its outstanding common stock from about 87.3 million shares to roughly 3.5 million shares. Furthermore, the company has announced definitive agreements to acquire an 80 MWp solar portfolio across the United States, a transaction valued at $60 million which is expected to generate an average annual revenue of $6.7 million and operating income of $5.1 million.
In other developments, Alternus has expanded its Hawaii projects through partnerships and is actively seeking additional acquisitions in renewable energy segments. The company has also increased its authorized shares of common stock from 150 million to 300 million and elected John McQuillan as a Class I director.
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