SUNation Energy Announces $1.0 Million Line of Credit
Rhea-AI Summary
SUNation Energy has secured a $1.0 million line of credit from MBB Energy, a related party controlled by Scott Maskin. The credit line will be available for one year and carries an 8% annual interest rate, primarily intended for working capital and corporate purposes.
The solar energy provider can request multiple loans up to the aggregate principal amount. According to CFO Jim Brennan, this financing strengthens their financial profile and balance sheet while providing flexibility for long-term growth investments.
The agreement, disclosed in an SEC Form 8-K filing on April 17, 2025, represents a stepping stone as SUNation plans to pursue a larger commercial banking relationship with an expanded credit facility.
Positive
- Access to $1.0M line of credit for working capital and corporate purposes
- Favorable interest rate of 8% on drawn loans
- Company pursuing larger commercial line of credit facility
Negative
- Related party transaction - credit line from affiliate controlled by Scott Maskin
- Small credit line amount ($1.0M) may indicate limited financing options
- Suggests potential working capital needs
News Market Reaction – SUNE
On the day this news was published, SUNE declined 4.67%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
RONKONKOMA, N.Y., April 29, 2025 (GLOBE NEWSWIRE) -- SUNation Energy, Inc. (Nasdaq: SUNE) (“SUNation” or “the Company”), a leading provider of sustainable solar energy and backup power solutions for households, businesses, and municipalities, announced that it has entered into a new
The line of credit, if utilized, will be used primarily for working capital and corporate purposes. The Company may request one or more loans of up to an aggregate principle amount
“We have made significant progress in strengthening our financial profile, with a primary focus on strengthening our balance sheet and enhancing future cash flows, while meeting our financial obligations on a timely basis,” said Jim Brennan, Chief Financial Officer. “Our ability to access this fresh capital on favorable terms provides us with greater financial flexibility to invest in areas that support our long-term growth initiatives. We appreciate the continuing support of MBB.”
With this line of credit established, the Company intends to seek a new commercial banking relationship that will include a larger commercial line of credit facility.
About SUNation Energy, Inc.
SUNation Energy, Inc. 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) provide homeowners and businesses of all sizes with an end-to-end product offering spanning solar, battery storage, and grid services. SUNation Energy, Inc.’s largest markets include New York, Florida, and Hawaii, and the company operates in three (3) states.
Forward Looking Statements
Our prospects here at SUNation Energy Inc. are subject to uncertainties and risks. This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. The Company intends that such forward-looking statements be subject to the safe harbor provided by the foregoing Sections. These forward-looking statements are based largely on the expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond the control of management. Therefore, actual results could differ materially from the forward-looking statements contained in this presentation. The Company cannot predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. The reader should consider statements that include the words “believes”, “expects”, “anticipates”, “intends”, “estimates”, “plans”, “projects”, “should”, or other expressions that are predictions of or indicate future events or trends, to be uncertain and forward-looking. We caution readers not to place undue reliance upon any such forward-looking statements. The Company does not undertake to publicly update or revise forward-looking statements, whether because of new information, future events or otherwise. Additional information respecting factors that could materially affect the Company and its operations are contained in the Company's filings with the SEC which can be found on the SEC's website at www.sec.gov.
Contacts:
Scott Maskin
Chief Executive Officer
smaskin@sunation.com
SUNation Energy Investor Relations
IR@sunation.com
(631) 350-9340
FAQ
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