Sagaliam Acquisition Corp. announced a private placement of convertible promissory note for gross proceeds of $1,500,000 on August 23, 2022. The transaction included participation from returning investor Sagaliam Sponsor LLC.

Pursuant to the promissory note, the sponsor agreed to loan the company an aggregate principal amount up to $1,500,000. The principal of this promissory note may be drawn down from time to time prior to the earlier of April 30, 2023 or the date on which the company consummates an initial business combination with a target business upon written request from the company to the sponsor. The promissory note is non-interest bearing and all outstanding amounts under the promissory note will be due on the earlier of April 30, 2023 or the date on which the company consummates a Business Combination (the “Maturity Date”).

If a Business Combination is not announced prior to December 23, 2022, the unpaid principal balance of the Promissory Note, and all other sums payable with regard to the promissory note, shall automatically and immediately become due and payable, in all cases without any action on the part of the sponsor. All or a portion of the amounts outstanding under the promissory note may be converted on the Maturity Date into units at a price of $10.00 per unit at the option of the sponsor. The units would be identical to the company's outstanding private placement units that were issued to the Sponsor in a private placement at the time of the Company's initial public offering.

The promissory note contains customary events of default, including, among others, those relating to the company's failure to make a payment of principal when due.