Battery Future Acquisition Corp. Enters into Securities Purchase Agreement

Battery Future Acquisition Corp. (NYSE: BFAC) recently disclosed on November 22, 2024, that it, along with its wholly-owned subsidiary Classover Holdings, Inc., has engaged in a securities purchase agreement with a third-party investor. The agreement, known as the PIPE Agreement, involves a subscription for and purchase of shares of Series B preferred stock of Pubco, a subsidiary of BFAC, for an aggregate sum of up to $5 million. This move is in connection with the anticipated business combination among BFAC, Pubco, and Class Over Inc.

Upon consummation of the Business Combination, Pubco is set to issue up to 5,000 shares of Series B Pubco Preferred Stock as part of the PIPE Agreement. This issuance comprises 2,400 shares at the time of the Business Combination, up to 1,600 shares upon exercise of certain warrants termed as First Preferred Warrants, and a further up to 1,000 shares upon exercising Second Preferred Warrants after the 6-month anniversary of the Business Combination.

Holders of the Series B Pubco Preferred Stock are eligible for dividends at a rate of 18% per annum and have voting rights based on their ownership. As per the terms outlined, while these shares are outstanding, actions affecting the power, preferences, or rights of the Series B Pubco Preferred Stock require majority holder consent.

The Series B Pubco Preferred Stock’s redemption, conversion, and liquidation terms have also been detailed, including provisions for change of control scenarios. Additionally, the stockholders are entitled to certain demanding situations such as trading suspensions, payment defaults, and bankruptcies for potential conversion or redemption benefits.

Battery Future Acquisition Corp. concluded that the details of the PIPE Agreement, Certificate of Designations, Registration Rights Agreement, and Preferred Stock Warrants are available in the respective exhibits of the filing. This announcement signifies a significant step in the ongoing developments for Battery Future Acquisition Corp. and its subsidiaries.

The respective agreement files are vital for an intricate understanding of the terms outlined in this recent development. Stakeholders and investors keen on the specifics of this agreement are encouraged to refer to the complete texts of these agreements within the filing itself.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Battery Future Acquisition’s 8K filing here.

Battery Future Acquisition Company Profile

Battery Future Acquisition Corp. does not have significant operations. The company focuses on effecting a merger, capital share exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to target assets or companies along the battery value chain.