Atlantic Coastal Acquisition Corp. II announced a private placement of a non-interest bearing, unsecured convertible promissory note in the aggregate principal amount of $80,000 to returning investor Atlantic Coastal Acquisition Management II LLC for the gross proceeds of $80,000 on October 14, 2023. The $80,000 was deposited into the company?s trust account in order to extend the amount of time that the company has available to complete a business combination.

Upon the closing of a business combination by the company, the sponsor may elect to either receive repayment under the note or to convert all or a portion of the amount loaned under the note into Series A common stock of the company at a price equal to $10.20 per share. In the event that the company does not complete a business combination, the amount loaned under the note will be repaid to the Sponsor only from funds held outside the Trust Account or will be forfeited, eliminated, or otherwise forgiven.