Mountain Crest Acquisition Corp. III announced that it has issued an unsecured promissory note up to $100,000 to the returning investor Mountain Crest Holdings III LLC on October 3, 2022. The note bears no interest and is due and payable upon the earlier to occur of the date on which the company consummates its initial business combination or the date the company liquidates if a business combination is not consummated.

In addition, the note may be converted at the closing of a business combination by the company into private units of the company identical to the public units issued in the company's initial public offering at a price of $10 per unit with each private unit consisting of one share of common stock and one right to receive one-tenth of a share of the common stock upon the consummation of an initial business combination.