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RONKONKOMA, N.Y., April 09, 2025 (GLOBE NEWSWIRE) -- SUNation Energy, Inc. (Nasdaq: SUNE) (“SUNation” or “the Company”), a leading provider of sustainable solar energy and backup power solutions for households, businesses, and municipalities, today announced that recently completed capital transactions have allowed the Company to materially deliver its balance sheet, improve future cash flows, and enhance its financial flexibility to pursue its long-term growth objectives.
As previously announced, the Company raised approximately $20.0 million in aggregate gross proceeds via a securities purchase agreement with certain institutional investors (“the Offering”), which closed in separate tranches in February 2025 and April 2025, respectively. Using a portion of the proceeds from the Offering, the Company has eliminated approximately $12.6 million of secured debt and other long-term contractual obligations.
Primary among these obligations was the previously announced repayment in full of $9.4 million in senior and junior secured loans, eliminating all monthly payment obligations and removing an average annual cash drain of approximately $3.4 million through 2027.
Today, the Company announced that on April 7, 2025 it paid an aggregate $2.1 million of earnout consideration associated with the November 2022 acquisition of SUNation Solar Systems, Inc. and five of its affiliated entities (SUNation Commercial, Inc., SUNation Service, Inc., SUNation Electric, Inc., SUNation Energy, LLC, and SUNation Roofing, LLC) by Pineapple Energy Inc. (now known as SUNation Energy, Inc.). Following this recent payment, the total earnout consideration of $2.5 million is paid in full.
“We are very proud to have executed on these debt reduction initiatives, which reflect our commitment to meeting SUNation’s financial obligations while strengthening our financial profile and capital base,” said Scott Maskin, Chief Executive Officer. “This reduction in debt has produced material benefits including lowering our annual interest expense, while enhancing cash flows that provide the flexibility necessary to invest appropriately in our long-term expansion and/or other strategic options. Given the timing of the closing of the offering and associated payments, these benefits will initially be reflected in our results for the first quarter ended March 31, 2025.”
The Company also announced that it expects to file its Form 10-K for the period ended December 31,2024 on or before April 15, 2025. In connection with this filing, the Company will provide additional information regarding its results, recent events and business strategy, as well as its plans to address investors.
