Appreciate Holdings, Inc.: debt financing — Appreciate Holdings receives $6M demand from Vellar under forward purchase agreement; company disputes validity

Appreciate Holdings, Inc.

Vellar Opportunity Fund SPV LLC demands $6M cash or 5,144,074 newly issued shares (or 9M penalty shares) under November 2022 forward purchase agreement.
Trigger event: SFR share VWAP fell below $2.00 for 20 of 30 consecutive trading days after business combination.
Appreciate Holdings disputes the validity and effect of the notice; no payment has been made.
Maturity consideration due on April 27, 2023; company contests obligation.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Appreciate Holdings, Inc. faced acceleration on debt of $6,000,000 with Vellar Opportunity Fund SPV LLC maturing April 25, 2023.

Principal: $6,000,000
Counterparty: Vellar Opportunity Fund SPV LLC
Maturity: April 25, 2023
Event: acceleration

Exact text from the filing

On April 25, 2023, the Company received a purported notice from Vellar Opportunity Fund SPV LLC that purports to trigger maturity consideration under the previously disclosed Forward Purchase Agreement entered into in November 2022. The amount of the maturity consideration demanded is $6,000,000 if paid in cash.

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Source: SEC EDGAR

accession 0001213900-23-034660

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