Monterey Capital Acquisition Corporation announced that it will issue 5,000,000 pre-paid warrants at a price of $1 per warrant for gross proceeds of $5,000,000 on January 20, 2022. The transaction will include participation from returning investor Monterrey Acquisition Sponsor, LLC. Each warrant entitles the holder to purchase one class A common share at an exercise price of $11.50 per share.

The warrants will become exercisable on the later of the completion of its initial business combination and 12 months from the closing of the initial public offering, and will expire five years after the completion of its initial business combination or earlier upon redemption or liquidation. The company will issue 5,450,000 warrants for gross proceeds of $5,450,000 if the underwriters' option is exercised in full in the concurrent initial public offering. All securities, including the class A common shares issuable upon exercise of the warrants, will not be transferable, assignable or salable until 30 days after the completion of its initial business combination.