Mountain Crest Acquisition IV in an 8-K said it issued an unsecured convertible promissory note for $400,000 to CH-Auto Technology Corporation Ltd. The SPAC must repay the loan either when it closes a merger or liquidates, although the loan may be forgiven if Mountain Crest IV does not complete a deal.
The note may be converted at the closing of a business combination into the SPAC’s common stock or ordinary shares, at CH Auto’s option, at $10 per share.
The SPAC’s IPO raised $50 million more than two years ago. Mountain Crest IV is broadly focused on companies in North America. Read more.
