Arrowroot Acquisition Corp. announced a private placement to issue an 15% unsecured convertible promissory note for the gross proceeds $2,000,000 on June 13, 2023. The transaction included participation from new lender Arrowroot Acquisition LLC for $700,000. The Note bears interest at 15% per annum and matures upon closing of the Company?s initial business combination or the date that the winding up of the Company is effective. The Company does not consummate an initial business combination, the Note will be repaid only from funds held outside of the trust account established in connection with the Company?s initial public offering or will be forfeited, eliminated or otherwise forgiven. The Note may be further drawn down from time to time prior to the Maturity Date upon request by the Company subject to the Sponsor?s approval. The Note is subject to customary events of default, the occurrence of certain of which automatically triggers the unpaid principal balance of the Note and all other sums payable with regard to the Note becoming immediately due and payable. The issuance of the Note was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.

On the same date the company announced that it has received $0.7 million in the first tranche. The Payee shall fund each Drawdown Request no later than five (5) business days after receipt of a Drawdown Request; provided , however , that Payee shall fund seven-hundred thousand dollars ($700,000) upon execution of this Note.