Pineapple Energy Announces Restructuring of Existing Series A Convertible Preferred Stock and Related Warrants
Pineapple Energy Inc. (Nasdaq: PEGY) has announced a significant restructuring of its existing Series A Convertible Preferred Stock and related Warrants. The company has entered into Securities Exchange Agreements with holders to exchange these for shares of Series C Convertible Preferred Stock. This move follows an amendment to the company's Secured Credit Note, providing an additional $120,000 principal advance convertible at $0.45 per share.
The restructuring triggered adjustments in the conversion price of Series A Preferred Stock and exercise price of Warrants to $0.45 per share. As a result, holders can now convert their Series A Preferred Stock into 28,942,573 common shares and exercise Warrants for 66,741,065 common shares. The new Series C Preferred Stock is convertible into up to 62,313,111 common shares at $0.45 per share, without the price reset provisions of the Series A stock.
Pineapple Energy Inc. (Nasdaq: PEGY) ha annunciato una significativa ristrutturazione delle sue attuali Azioni Prefereziali Convertibili di Serie A e dei relativi Warrant. L'azienda ha stipulato Accordi di Scambio di Titoli con i detentori per scambiare questi titoli con azioni di Azioni Prefereziali Convertibili di Serie C. Questa mossa segue un emendamento al Note di Credito Garantito dell'azienda, fornendo un ulteriore $120,000 di anticipo principale convertibile a $0.45 per azione.
La ristrutturazione ha attivato aggiustamenti nel prezzo di conversione delle Azioni Prefereziali di Serie A e nel prezzo di esercizio dei Warrant a $0.45 per azione. Di conseguenza, i detentori possono ora convertire le loro Azioni Prefereziali di Serie A in 28,942,573 azioni ordinarie ed esercitare i Warrant per 66,741,065 azioni ordinarie. La nuova Azione Prefereziale di Serie C è convertibile fino a 62,313,111 azioni ordinarie a $0.45 per azione, senza le clausole di ripristino del prezzo delle Azioni di Serie A.
Pineapple Energy Inc. (Nasdaq: PEGY) ha anunciado una reestructuración significativa de sus actuales Acciones Preferentes Convertibles de Serie A y los Warrants relacionados. La compañía ha celebrado Acuerdos de Intercambio de Valores con los tenedores para intercambiar estos por acciones de Acciones Preferentes Convertibles de Serie C. Este movimiento sigue a una enmienda al pagaré de crédito garantizado de la empresa, proporcionando un $120,000 de anticipo principal convertible a $0.45 por acción.
La reestructuración provocó ajustes en el precio de conversión de las Acciones Preferentes de Serie A y el precio de ejercicio de los Warrants a $0.45 por acción. Como resultado, los tenedores ahora pueden convertir sus Acciones Preferentes de Serie A en 28,942,573 acciones comunes y ejercer Warrants por 66,741,065 acciones comunes. Las nuevas Acciones Preferentes de Serie C son convertibles hasta 62,313,111 acciones comunes a $0.45 por acción, sin las disposiciones de ajuste de precio de las acciones de Serie A.
파인애플 에너지 주식회사 (Nasdaq: PEGY)는 기존의 A 시리즈 전환 우선주 및 관련 워런트에 대한 중요한 구조 조정을 발표했습니다. 회사는 보유자와 증권 교환 계약을 체결하여 이를 C 시리즈 전환 우선주로 교환했습니다. 이 움직임은 회사의 담보 신용 노트에 대한 수정 후 이루어졌으며, 추가로 $120,000의 주금 선불을 $0.45로 전환할 수 있습니다.
구조 조정은 A 시리즈 우선주의 전환 가격 및 워런트의 행사 가격을 $0.45로 조정하게 했습니다. 결과적으로, 보유자는 이제 A 시리즈 우선주를 28,942,573 주식으로 전환하고 워런트를 행사하여 66,741,065 주식으로 전환할 수 있습니다. 새로운 C 시리즈 우선주는 연간 $0.45의 가격에 최대 62,313,111 주식으로 전환할 수 있으며, A 시리즈 주식의 가격 재설정 조항은 없습니다.
Pineapple Energy Inc. (Nasdaq: PEGY) a annoncé une restructuration significative de ses actions privilégiées convertibles de série A et des warrants associés. L’entreprise a établi des accords d’échange de titres avec les détenteurs afin d’échanger ceux-ci contre des actions des actions privilégiées convertibles de série C. Ce mouvement fait suite à un amendement à la note de crédit garantie de l’entreprise, fournissant un acompte principal supplémentaire de $120,000 convertible à $0.45 par action.
La restructuration a entraîné des ajustements du prix de conversion des actions privilégiées de série A et du prix d’exercice des warrants à $0.45 par action. En conséquence, les détenteurs peuvent désormais convertir leurs actions privilégiées de série A en 28,942,573 actions ordinaires et exercer des warrants pour 66,741,065 actions ordinaires. Les nouvelles actions privilégiées de série C sont convertibles jusqu'à 62,313,111 actions ordinaires à $0.45 par action, sans les clauses de réinitialisation du prix des actions de série A.
Pineapple Energy Inc. (Nasdaq: PEGY) hat eine bedeutende Umstrukturierung ihrer bestehenden Serie A wandelbaren Vorzugsaktien und der damit verbundenen Warrants angekündigt. Das Unternehmen hat Wertpapier-Tauschverträge mit den Inhabern geschlossen, um diese gegen Aktien der Serie C wandelbaren Vorzugsaktien einzutauschen. Dieser Schritt folgt einer Änderung des gesicherten Kreditverpflichtung des Unternehmens, die einen zusätzlichen $120,000 an wandlungsfähiger Hauptforderung zu $0.45 pro Aktie beinhaltet.
Die Umstrukturierung führte zu Anpassungen des Umwandlungspreises der Serie A Vorzugsaktien und des Ausübungspreises der Warrants auf $0.45 pro Aktie. Infolgedessen können die Inhaber nun ihre Serie A Vorzugsaktien in 28,942,573 Stammaktien umwandeln und Warrants für 66,741,065 Stammaktien ausüben. Die neuen Serie C Vorzugsaktien sind bis zu 62,313,111 Stammaktien zu $0.45 pro Aktie wandelbar, ohne die Preisneufestlegungsklauseln der Serie A Aktien.
- Restructuring of Series A Convertible Preferred Stock and Warrants may simplify the company's capital structure
- Additional $120,000 principal advance secured through amended credit note
- Elimination of price reset provisions in new Series C Preferred Stock may reduce potential future dilution
- Significant potential dilution with up to 62,313,111 new common shares issuable upon conversion of Series C Preferred Stock
- Conversion price of $0.45 per share represents a substantial discount to current market price
Pineapple Energy's restructuring of its Series A Preferred Stock and related warrants is a significant move to simplify its capital structure. The exchange of these securities for Series C Preferred Stock eliminates the price reset provisions, potentially reducing future dilution risks. However, the immediate impact is substantial dilution, with up to
The additional
The restructuring of Pineapple Energy's securities involves complex legal considerations. The Exchange Agreements and issuance of Series C Preferred Stock without registration under the Securities Act rely on exemptions from registration requirements. This approach, while potentially expediting the process, limits the transferability of these securities.
The company's disclosure of the transaction details in an 8-K filing demonstrates compliance with SEC regulations. However, investors should note that these unregistered securities carry restrictions and potential liquidity challenges. The explicit statement that this press release is not an offer to sell or solicitation to buy is a important legal disclaimer, protecting the company from potential securities law violations.
Pineapple Energy's restructuring reflects broader trends in the renewable energy sector, where companies are seeking to optimize their capital structures amidst challenging market conditions. The conversion price of
The elimination of price reset provisions in the new Series C Preferred Stock may attract investors seeking more predictable exposure to the solar energy market. However, the potential for substantial dilution could pressure the stock price in the short term. This move underscores the ongoing balance renewable energy companies must strike between growth financing and shareholder value preservation in a competitive and capital-intensive industry.
MINNETONKA, Minn., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Pineapple Energy Inc. (Nasdaq: PEGY) (“Pineapple” or the “Company”), a leading provider of sustainable solar energy and back-up power to households and small businesses, announced today that they have entered into Securities Exchange Agreements (the “Exchange Agreements”) with the holders of the Company’s Series A convertible preferred stock (the “Series A Preferred Stock”) and related warrants (the “Warrants”) pursuant to which the holders have agreed to exchange the Series A Preferred Stock and Warrants for shares of the Company’s Series C convertible preferred stock (the “Series C Preferred Stock”).
Immediately prior to the execution of the Exchange Agreements, the Company entered into an Amended and Restated Convertible Secured Note with the lender party to the Company’s Secured Credit Note, dated July 22, 2024 (the “Amended Note”), providing for an additional principal advance of
As a result of the Reset, the holders of the Series A Preferred Stock and Warrants would be able to convert their Series A Preferred Stock into an aggregate of 28,942,573 shares of the Company’s common stock at
For a further description of the transaction and the terms of the Series C Preferred Stock, see the Company’s Current Report on Form 8-K to be filed with the Securities and Exchange Commission today.
The closing of the transactions contemplated by the Exchange Agreements and the Amended Note will occur on September 10, 2024, subject to the satisfaction of certain closing conditions.
The securities issued pursuant to the Exchange Agreements and Amended Note have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About Pineapple Energy
Pineapple is focused on growing leading local and regional solar, storage, and energy services companies nationwide. Our vision is to power the energy transition through grass-roots growth of solar electricity paired with battery storage. Our portfolio of brands (SUNation Energy, Hawaii Energy Connection, E-Gear) provide those within the Residential and Commercial sectors an end-to-end product offering spanning solar, battery storage, and grid services.
Forward Looking Statements
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth, and future opportunities, including the prospect of future capital-raising activities. These statements are based on Pineapple’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements here due to changes in economic, business, competitive or regulatory factors, and other risks and uncertainties, set forth in Pineapple’s filings with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date of this press release. Pineapple does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.
Contacts:
Scott Maskin
Interim Chief Executive Officer
+1 (631) 823-7131
scott.maskin@pineappleenergy.com
Pineapple Investor Relations
+1 (952) 996-1674
IR@pineappleenergy.com
FAQ
What is the new conversion price for Pineapple Energy's (PEGY) preferred stock and warrants?
How many common shares can be issued under Pineapple Energy's (PEGY) new Series C Preferred Stock?
When will the closing of Pineapple Energy's (PEGY) restructuring transactions occur?
What additional financing did Pineapple Energy (PEGY) secure in connection with the restructuring?
