SunPower Secures $20 Million SEPA Agreement

Rhea-AI Summary

SunPower (NASDAQ: SPWR) secured a $20 million Standby Equity Purchase Agreement (SEPA) with an affiliate of Yorkville Advisors Global that provides committed equity funding and a pre-paid advance feature. The SEPA is described as a discretionary backstop to preserve liquidity without diluting investors until drawn.

The company said this SEPA complements a $55 million Equity Line of Credit (ELOC)/b from White Lion Capital and a proposed intended to make SunPower cashflow self-sufficient and target permanent cashflow positivity in Q4 2026.

Positive

• Committed $20M SEPA provides immediate backstop liquidity
• Existing $55M ELOC expands low-cost equity access
• Board-approved plan targets cashflow positivity in Q4 2026

Negative

• SEPA pre-paid advances are repaid with equity, implying potential dilution when used
• Company depends on a proposed $30M equity offering to reach self-sufficiency
• Management calls SEPA an "expensive way to raise money" if drawn

Key Figures

SEPA funding capacity: $20 million Cash minimum target: $10 million Equity Line of Credit: $55 million +5 more

8 metrics

SEPA funding capacity $20 million Committed equity funding under Standby Equity Purchase Agreement with Yorkville

Cash minimum target $10 million Stated commitment to maintain minimum quarterly cash balance

Equity Line of Credit $55 million ELOC from White Lion Capital allowing direct equity sales

Direct equity sales limit $55 million Maximum under White Lion ELOC for gradual cash raises

SEPA pre-paid advances $20 million Potential pre-paid advances repaid with equity under Yorkville SEPA

Planned equity offering $30 million Contemplated outright equity deal to complete funding plan

Cashflow positive target Q4 2026 Board-approved plan to become permanently cashflow positive

Profitability expectation 2026 Expectation to maintain non-GAAP quarterly operating income profitability during 2026

Market Reality Check

Price: $1.80 Vol: Volume 934,712 vs 20-day ...

high vol

$1.80 Last Close

Volume Volume 934,712 vs 20-day average 547,986 (relative volume 1.71), indicating elevated trading activity before this news. high

Technical Price at 1.805 is trading below the 200-day MA of 1.82, reflecting a slightly weaker longer-term setup.

Peers on Argus

No peers from the stated sector appeared in the momentum scanner, suggesting the...

No peers from the stated sector appeared in the momentum scanner, suggesting the -7.44% move and elevated volume are likely stock-specific rather than part of a sector-wide shift.

Market Pulse Summary

This announcement details a funding framework built around a $20 million SEPA with Yorkville, a $55 ...

Analysis

This announcement details a funding framework built around a $20 million SEPA with Yorkville, a $55 million ELOC, and a contemplated $30 million equity offering. Together, these tools are intended to support a plan to maintain at least $10 million in cash, reach cashflow self-sufficiency, and target permanent cashflow positivity by Q4 2026 while maintaining non-GAAP operating income profitability. Investors may focus on execution, dilution from equity issuance, and progress toward these stated milestones.

Key Terms

standby equity purchase agreement, sepa, equity line of credit, non-gaap

4 terms

standby equity purchase agreement financial

"secured a Standby Equity Purchase Agreement (SEPA) with an affiliate of Yorkville"

A standby equity purchase agreement is a contract in which an investor or group agrees to buy a company’s newly issued shares on demand, giving the company a ready source of cash it can tap when needed. Think of it like a line of credit made with stock instead of a loan: it provides financial backup but can increase the number of shares outstanding, diluting existing owners and affecting per‑share value, so investors watch these deals for their impact on ownership and earnings per share.

sepa financial

"secured a Standby Equity Purchase Agreement (SEPA) with an affiliate of Yorkville"

SEPA, or Single Euro Payments Area, is a system that allows money to be transferred easily and quickly across European countries using a common set of rules and standards. It makes cross-border payments as simple as sending money within your own country, reducing costs and processing times. For investors, SEPA simplifies international transactions within Europe, making it easier to move funds and manage investments across multiple countries.

equity line of credit financial

"The first step was securing the $55 Equity Line of Credit (ELOC) from White Lion"

An equity line of credit is a loan that allows homeowners to borrow money against the value of their property, similar to having a flexible credit card secured by their home. It matters to investors because it provides a way for property owners to access cash for various needs, which can influence real estate markets and overall economic activity. This type of credit offers ongoing borrowing capacity, making it a valuable financial tool for those with significant property equity.

non-gaap financial

"We expect to maintain non-GAAP quarterly operating income profitability throughout 2026"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

AI-generated analysis. Not financial advice.

02/02/2026 - 08:00 AM

The Standby Equity Purchase Agreement Provides for $20 Million in Equity Funding

OREM, Utah, Feb. 02, 2026 (GLOBE NEWSWIRE) -- SunPower Inc. (herein “SunPower,” the “Company,” or Nasdaq: “SPWR”), a solar technology, services, and installation company – today announced that it has secured a Standby Equity Purchase Agreement (SEPA) with an affiliate of Yorkville Advisors Global (“Yorkville”) for a committed $20 million in funding from newly issued stock.

The SEPA vehicle includes a pre-paid advance feature, which SunPower can draw on subject to various predetermined conditions. The discretionary aspect of the SEPA capital facility provides financial flexibility, an “insurance policy,” but does not dilute investors or trigger interest payments on the unused portions.

SunPower CEO T.J. Rodgers said, “This is the second step in meeting our commitment to maintain a minimum of $10 million in cash every quarter going forward. The first step was securing the $55 Equity Line of Credit (ELOC) from White Lion Capital two weeks ago that allows for direct equity sales up to $55 million that raises cash slowly over time at a very low cost. The Yorkville SEPA allows for pre-paid advances of up to $20 million that are paid back with equity, an expensive way to raise money right now, so this SEPA will be used only as a backstop.”

Rodgers concluded, “We are pursuing a third deal to finish the SunPower funding, to become cashflow self-sufficient, a $30 million outright equity offering that, if completed, would allow us to become permanently cashflow positive in Q4’26, according to our board-approved plan. We expect to maintain non-GAAP quarterly operating income profitability throughout 2026 during this transition.”

About SunPower
SunPower Inc. (Nasdaq: SPWR) is a leading residential solar services provider in North America. The Company’s digital platform and installation services support energy needs for customers wishing to make the transition to a more energy-efficient lifestyle. For more information visit www.sunpower.com.

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events, and , you can identify forward-looking statements because they contain words such as “will,” “goal,” “prioritize,” “plan,” “target,” “expect,” “expected to,” “focus,” “forecast,” “look forward,” “opportunity,” “believe,” “estimate,” “continue,” “anticipate,” “could,” “forecast,” and “pursue” or the negative of these terms or similar expressions. Forward-looking statements in this press release include, without limitation, SunPower’s expectation that it will report certain minimum cash balances at the end of each quarter and the achievement of its quarterly cash balance goals, as well as SunPower’s expected reporting that it has set revenue and operating income records and that it is cash flow positive. Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties. For additional information on these risks and uncertainties and other potential factors that could affect our business and financial results, or cause actual results to differ from the results predicted, readers should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on April 30, 2025, our quarterly reports on Form 10-Q filed with the SEC, and other documents that we have filed with, or will file with, the SEC. Such filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements in this press release speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and SunPower assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

Company Contacts:
Dan McCranie	Sioban Hickie
Board Member	VP Investor Relations
dan.mccranie@sunpower.com	IR@sunpower.com
(408) 930-2048	(801) 515-8727

Source: SunPower Inc.

This press release was published by a CLEAR® Verified individual.

FAQ

What is the $20 million SEPA SunPower (SPWR) announced on February 2, 2026?

The SEPA is a committed $20 million equity facility with a pre-paid advance feature. According to the company, the Yorkville affiliate provides a discretionary backstop that SunPower can draw on under predetermined conditions to preserve liquidity.

How does the Yorkville SEPA affect potential dilution for SunPower (SPWR) shareholders?

Dilution occurs if pre-paid advances are repaid in equity after drawing the SEPA. According to the company, unused portions do not dilute investors, but drawn advances are repaid with equity and can dilute holders when used.

How does the $20M SEPA relate to the $55M ELOC SunPower (SPWR) previously secured?

The SEPA is a discretionary backstop complementing the ELOC rather than the primary funding source. According to the company, the $55M ELOC allows gradual, low-cost equity sales while the SEPA serves as an insurance policy for liquidity.

Will SunPower (SPWR) become cashflow positive after these financing steps?

Management aims for permanent cashflow positivity in Q4 2026 if remaining financing completes. According to the company, a planned $30M equity offering plus the ELOC and SEPA would enable the board-approved path to cashflow self-sufficiency.

What is SunPower's (SPWR) intended use of the SEPA versus the $30M equity offering?

SunPower intends to use the SEPA primarily as a backstop, not routine funding, and pursue a $30M offering for cash needs. According to the company, the SEPA is more expensive and will be used only if necessary while the offering would supply planned capital.