Pineapple Energy Prices $1.0 Million Registered Direct Offering of Common Stock
Pineapple Energy Inc. has entered into a definitive agreement with investors for the purchase and sale of 2,702,703 shares of the Company’s common stock at a purchase price of $0.37 per share in a registered direct offering. The gross proceeds to Pineapple from the offering are expected to be approximately $1.0 million. This move is aimed at raising funds for the Company's sustainable solar energy and back-up power services.
Positive
Pineapple Energy Inc. is raising approximately $1.0 million through the sale of 2,702,703 shares of common stock at a purchase price of $0.37 per share.
The funds raised will be used to support the Company's sustainable solar energy and back-up power services.
The direct offering of 2,702,703 shares by Pineapple Energy Inc. at $0.37 per share for gross proceeds of approximately $1.0 million represents a strategic move to raise capital. This influx of funds is critical for the company's operations, expansion plans, or possibly for strengthening its balance sheet. The pricing of the offering at $0.37 per share warrants attention as it provides insights into the current valuation the market is attributing to the company's stock. This valuation, in turn, impacts investor perception and could influence the stock's performance in the short term.
It is essential to consider the dilutive effect of the offering on existing shareholders. The increase in the number of shares outstanding can lead to earnings per share dilution if the raised capital does not result in an immediate and proportional increase in earnings. Stakeholders should closely monitor how the company plans to allocate the raised funds and any subsequent announcements regarding strategic initiatives that could bolster investor confidence.
Within the sustainable energy sector, particularly solar energy, such capital raises are not uncommon as companies often require significant investment to grow and remain competitive. The use of proceeds is a critical factor in evaluating the potential impact of the offering. If the capital is earmarked for growth initiatives such as research and development, market expansion, or improving infrastructure, it could position Pineapple Energy Inc. favorably within the industry. However, if the funds are primarily used for operational liabilities, it might signal underlying financial instability.
Another aspect to consider is the current market conditions for sustainable energy investments. Investor appetite for such offerings can be influenced by factors like governmental policies, subsidies and technological advancements. The reception of this offering in the market could also serve as a barometer for the sector's overall investment climate.
From a legal standpoint, the nature of the transaction as a registered direct offering entails compliance with specific securities regulations. The company must adhere to the Securities and Exchange Commission (SEC) guidelines, ensuring full disclosure of terms and potential risks to investors. The transparency of the offering process and the use of a placement agent can mitigate legal risks and contribute to the offering's credibility.
Moreover, the definitive agreement with investors indicates a binding commitment, which provides a level of certainty regarding the expected proceeds, barring any unforeseen regulatory or compliance issues. It is also important for the company to maintain compliance with NASDAQ listing requirements post-offering, as failure to do so could result in adverse consequences for the stock's listing status.
02/05/2024 - 08:00 AM
MINNETONKA, Minn., Feb. 05, 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, today announced it has entered into a definitive agreement with investors for the purchase and sale of 2,702,703 shares of the Company’s common stock at a purchase price of $0.37 per share in a registered direct offering. The gross proceeds to Pineapple from the offering are expected to be approximately $1.0 million , before deducting placement agent fees and other offering expenses payable by Pineapple. The offering is expected to close on or about February 7, 2024, subject to customary closing conditions.
Roth Capital Partners is acting as the sole placement agent for the offering.
Pineapple intends to use the proceeds from the proposed offering for working capital and other general corporate purposes.
The shares of common stock are being offered and sold by the Company pursuant to an effective shelf registration statement on Form S-3 (File No. 333-267066) previously filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on September 2, 2022. The offering of such securities is being made only by means of a prospectus supplement that forms a part of the registration statement. Copies of the prospectus supplement and accompanying base prospectus will be filed with the SEC and, when available, may be obtained from Roth Capital Partners, LLC, 888 San Clemente, Newport Beach, CA 92660, Attention: Prospectus Department, by telephone at (800) 678-9147 or by accessing the SEC's website, www.sec.gov.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or 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, Hawaii Energy Connection, E-Gear, Sungevity, and Horizon Solar Power) provide homeowners and small businesses with 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 the completion of its offering and the anticipated use of proceeds therefrom, future financial performance, future growth or growth opportunities, future opportunities, future cost reductions, future flexibility to pursue acquisitions, future cash flows and future earnings. These statements are based on the Company’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, including those set forth in the Company’s filings with the SEC. The forward-looking statements in this press release speak only as of the date of this press release. The Company does not undertake any obligation to update or revise these forward-looking statements for any reason, except as required by law.
Contacts:
Kyle Udseth
Eric Ingvaldson
What is the purchase price of Pineapple Energy Inc.'s common stock in the registered direct offering?
The purchase price of Pineapple Energy Inc.'s common stock in the registered direct offering is $0.37 per share.
How many shares of common stock is Pineapple Energy Inc. selling in the offering?
Pineapple Energy Inc. is selling 2,702,703 shares of common stock in the offering.
What are the expected gross proceeds to Pineapple Energy Inc. from the offering?
The expected gross proceeds to Pineapple Energy Inc. from the offering are approximately $1.0 million.
