Appreciate Holdings, Inc. announced a private placement to issue convertible debentures for the gross proceeds of $1,475,000 on May 31, 2023. The transaction included participation from new investor Northern Pacific Investment Partners II, L.P., a fund managed by Northern Pacific Group, L.P. for $475,000. In connection with the issuance of the additional Debentures, the Company issued to the investors warrants to purchase an aggregate of 190,000 shares of Class A Common Stock of the Company, $0.0001 par value.

The warrants are immediately exercisable at an exercise price of $5.00 per share and include a cashless exercise provision. The warrants expire five years from the date of issuance. The bonds will mature one year from the date of issuance.