Sunworks Pays Off Debt and Strengthens Balance Sheet

Rhea-AI Summary

Sunworks, Inc. (NASDAQ: SUNW) has successfully raised approximately $20 million through an 'at the market' offering, selling about 3.8 million shares of common stock. This financial boost allowed the company to pay off $2.7 million in debt to CrowdOut Capital. Chairman Chuck Cargile indicated that this move strengthens the company's balance sheet and working capital to better navigate COVID-related challenges. Furthermore, Sunworks is in the process of recruiting a permanent CEO, anticipated to be appointed in Q1 2021, to support its ongoing operational objectives.

Positive

• Raised $20 million through stock offering.
• Reduced debt by $2.7 million, improving financial stability.
• Strengthened balance sheet and working capital position.

Negative

• None.

Company Completes ATM Offering – Raises $20 Million in Cash;
Pays off $2.7 Million CrowdOut Capital Debt

ROSEVILLE, Calif., Dec. 07, 2020 (GLOBE NEWSWIRE) -- Sunworks, Inc. (Nasdaq: SUNW), a provider of solar power solutions for agriculture, commercial and industrial (ACI), public works and residential markets, today announced the Company has sold approximately 3.8 million shares of common stock raising approximately $20 million in gross proceeds through “at the market” offerings under its prospectus supplement filed on November 25, 2020.   The Company used a portion of the proceeds from the sales of its common stock to fully repay the outstanding balance of approximately $2.7 million under its Loan Agreement with CrowdOut Capital, Inc.

Chuck Cargile, Sunworks Chairman of the Board said, “We have successfully bolstered our balance sheet, eliminated costly debt, and strengthened our working capital position, better positioning us to navigate the COVID-related challenges impacting our operations, our industry, and the economy as a whole. Additionally, we are actively recruiting a permanent Chief Executive Officer (CEO) to lead the next phase of Sunworks’ evolution and fulfillment of backlog. The Board and I are encouraged by the qualified candidates and expect to have a permanent CEO in place in the first quarter of 2021.”

About Sunworks, Inc.

Sunworks, Inc. (NASDAQ:SUNW) is a premier provider of high performance solar power systems. Sunworks is committed to quality business practices that exceed industry standards and uphold its ideals of ethics and safety. Sunworks continues to grow its presence, expanding nationally with regional and local offices. The Company strives to consistently deliver high quality, performance-oriented solutions for customers in a wide range of industries including agricultural, commercial and industrial, state and federal, public works, and residential. Sunworks’ diverse, seasoned workforce includes veterans who bring a sense of pride, discipline, and professionalism to their interaction with customers. Sunworks is a member of the Solar Energy Industries Association (SEIA) and is a proud advocate for the advancement of solar power. For more information, visit www.sunworksusa.com.

Safe Harbor Statement

Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words "anticipate," "believe," "estimate," “will,” "may," "intend," "expect" and similar expressions identify such forward-looking statements. Forward-looking statements include all statements other than statements of historical fact contained in this press release, including statements regarding the Company’s future sales, revenue, gross profit, gross margin, operating expenses, operating income, net income, cash balance and cash from operating activities. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based largely on the expectations of the Company and are subject to a number of risks and uncertainties. These risks include, but are not limited to, risks and uncertainties associated with: the impact of economic, competitive, regulatory, environmental and other factors affecting the Company and its operations, markets and products; the impact of COVID-19 and the related federal, state and local restrictions on the Company’s operations and workforce, the impact of COVID-19 and such restrictions on our customers, and the impact of COVID-19 on the Company’s supply chain and availability of shipping and distribution; the prospects for sales, lower revenues, failure to earn profit, higher costs than expected, potential operating losses, ownership dilution, inability to repay debt, and the inability to complete projects within anticipated timeframes and costs; the impact of tariffs imposed by governmental bodies; the impact of national and local economies generally; the Company’s ability to access governmental assisted financing; and other factors detailed in reports filed by the Company. You should also review the risks described in “Risk Factors” in Part I, Item 1A of Sunworks, Inc.’s Annual Report on Form 10-K and in the other reports and documents Sunworks files with the Securities and Exchange Commission from time to time.

Any forward-looking statement made by us in this press release is based only on information currently available to us and reflects only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Investor Relations Contact:

Rob Fink
FNK IR
646.809.4048
rob@fnkir.com  

FAQ

What recent funding event did Sunworks (SUNW) announce?

Sunworks announced it has raised approximately $20 million through an 'at the market' stock offering.

How much debt did Sunworks pay off with the raised funds?

Sunworks used part of the raised funds to fully repay $2.7 million in debt to CrowdOut Capital.

What is the purpose of Sunworks' recent capital raise?

The capital raised is aimed at strengthening the balance sheet and working capital, especially to manage COVID-related challenges.

When does Sunworks expect to have a new CEO in place?

Sunworks expects to appoint a new permanent CEO in the first quarter of 2021.