SUNation Energy Converts $1.2M Debt to Equity

SUNation Energy announced that its Board of Directors has approved, subject to final documentation and customary closing conditions, a partial conversion of certain outstanding long-term debt into shares of restricted common stock as the next step in the company's deliberate transformation designed to simplify its balance sheet and reduce legacy debt obligations, while also better aligning its capital structure with existing shareholders. The transaction will reduce SUNation's outstanding long-term debt by approximately $1.2M and will reduce or lower near-term cash obligations associated with servicing this debt. The company believes the transaction will further strengthen its balance sheet while supporting its broader efforts as it explores strategic transactions, which it announced on April 9, 2026. Under the terms, SUNation would issue approximately 677,000 shares of its restricted common stock in exchange for the near term retirement of approximately $1.2M of long-term debt under its outstanding April 2025 senior secured promissory note held by the company's chief executive offer and chief financial officer. he shares of common stock will be issued at $1.77 per share, which carries a 10% premium to the closing price of April 13, 2026. The restricted share issuance will represent an aggregate of approximately 19.9% of the company's outstanding public float, all of such shares will be locked-up for not less than 180 days from the date of issuance. The company expects the transaction, upon completion, to reduce leverage, improve near term cash flow by eliminating or lowering monthly debt service requirements through September 2026, and better align stakeholders with the company's long-term equity value creation objectives.