Arrowroot Acquisition in an amended proxy filing said merger partner iLearningEngines entered into a convertible note purchase agreement with an investor in which iLearningEngines issued a $700,000 note due in October 2025. Contingent upon the closing, iLearningEngines and other investors will enter into a 2024 Note Purchase Agreement, and iLearningEngines will issue and sell to those investors additional convertible notes due in October 2025 in an of $28.8 million. Each 2024 Convertible Note will accrue annual interest at 15% until the accrued interest (whether the note is repaid or not) equals 25% of the principal amount of the note, and 8% annually thereafter. Immediately prior to the completion of the business combination with Arrowroot, each 2024 Convertible Note will automatically convert into shares of iLearningEngines.
Arrowroot has postponed a shareholder vote on the deal five times. The vote is currently slated for April 1.
The deal was announced in April last year at a pro forma implied enterprise value of $1.4 billion, which includes the target’s rollover equity of $1.241 billion.
The agreement includes a minimum cash requirement of $100 million. Read more.
