Battery Future Acquisition in a regulatory filing said it issued an unsecured convertible promissory note for $1 million to Pala Investments Limited, with each advance capped at $500,000.
Terms call for the SPAC to repay the outstanding principal on the earlier of June 16 or the effective date of a business combination.
Pala may opt to convert the balance and interest into warrants to purchase the SPAC's Class A shares at $1 per warrant.
Proceeds from the note will be used for working capital.
Battery Future raised $300 million in a December 2021 ipo with plans to focus on industries spearheading the shift from fossil fuels to electrification, including companies in the battery value chain. Read more.