Authentic Equity Acquisition Corp. announced that it has issued unsecured promissory note in the principal amount of up to $250,000.00 to Authentic Equity Sponsor, LLC on September 8, 2022. The company may drawn down from time to time prior to the consummation of its initial business combination.

The notes will bear interest rate and will accrue on the unpaid and outstanding principal balance of the note at the lowest short-term applicable federal rate beginning on the date of issuance. The note is repayable in full upon the date of the business combination. The notes are convertible in to working capital warrants to purchase one Class A ordinary share, par value $0.0001 per share of the company equal to the principal amount of the note so converted divided by $1.00 per working capital warrant upon the request of investor.

The note was issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.