Monument Circle Acquisition Corp. announced a private placement of promissory note for gross proceeds of up to $300,000 on April 13, 2022. The transaction included participation from returning investor Monument Circle Sponsor LLC.

The note is without interest and matures on the earlier of (i) the date the winding up of the company is effective or (ii) the date the company completes its initial business combination and may be prepaid by the company at any time without premium or penalty. Draws under the note may be made by the company upon five business days' notice to the sponsor in amounts of at least $10,000, and the company expects to draw substantially the full amount of the note. The sponsor retains the right but not the obligation to convert some or all the unpaid principal under the note into warrants exercisable for one share of class a common stock of the company at a rate of one warrant for every one dollar of principal converted.

These warrants are identical to the warrants issued to the sponsor in the private placement that occurred upon consummation of the company's initial public offering. The warrants are also entitled to demand and piggyback registration under terms consistent with the registration rights agreement between the company and the parties thereto, dated January 13, 2021. In the note, the sponsor affirmatively waives any claims against the company's trust account.