Enphys Acquisition Corp. announced a private placement of non-convertible promissory note to Enphys Acquisition Sponsor LLC in the principal amount of $100,000 on March 1, 2024. The issuance of the Fixed Rate Promissory Note was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.

Under the terms of the promissory note, the company may request from time to time prior to the maturity date, up to $100,000 in drawdowns on the principal. Each drawdown request must state the amount to be drawn down, and must not be an amount less than $10,000 unless agreed upon by the company and the payee. Payee shall fund each drawdown request no later than (3) business days after receipt of a drawdown request; provided, however, that the maximum amount of drawdowns outstanding under the promissory note at any time may not exceed $100,000.

No fees, payments or other amounts shall be due to the payee in connection with, or as a result of, any drawdown request by the company. The interest rate applicable to drawdowns pursuant to the Fixed Rate Promissory Note is equal to 12% per annum.