Flame Acquisition Corp. announced a private placement of an unsecured convertible promissory note in the principal amount of $170,000 on September 30, 2022. The transaction included participation from returning investor Flame Acquisition Sponsor LLC.

The note does not bear interest and is repayable in full upon consummation of the company's initial business combination. Upon the consummation of a Business Combination, the investor will have the option, but not the obligation, to convert the principal balance of the note, in whole or in part, into that number of warrants to purchase one share of class A common stock equal to the principal amount of the note so converted divided by $1. Each warrant entitles the holder to purchase one additional class A common share at an exercise price of $11.50.