Company: SUNE
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0001140361-25-007723
Chunk: 10

Company: SUNation Energy, Inc.
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 10
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 in our authorized shares of Common Stock is in the best interests of the Company and unanimously recommends approval by the stockholders. The Board believes that the availability of additional authorized shares of Common Stock is required for several reasons including, but not limited to, the additional flexibility to issue Common Stock for a variety of general corporate purposes as the Board may determine to be desirable including, without limitation, future financings, investment opportunities, acquisitions, or other distributions and stock splits (including splits effected through the declaration of stock dividends). As of the Record Date, 4,393,587 shares of our Common Stock were issued and outstanding. Our working capital requirements are significant and may require us to raise additional capital through additional equity financings in the future. If we issue additional shares of Common Stock or other securities convertible into shares of our Common Stock in the future, it could dilute the voting rights of existing stockholders and could also dilute earnings per share and book value per share of existing stockholders. The increase in authorized number of Common Stock could also discourage or hinder efforts by other parties to obtain control of the Company, thereby having an anti-takeover effect. The increase in authorized number of Common Stock is not being proposed in response to any known threat to acquire control of the Company. Current Plans, Proposals or Arrangements to Issue Shares of Common Stock As of the Record Date, the Company had:

| • | 11,078,480 shares of Common Stock issuable upon the exercise of Pre-Funded Warrants (as defined in Proposal 3); |

| • | 314 shares of Common Stock issuable upon vesting of restricted stock unit awards; |

| • | 12,422 shares of Common Stock reserved for future issuance under our 2022 Equity Incentive Plan; |

| • | 400 shares of Common Stock reserved for future issuance under our 2022 Employee Stock Purchase Plan; |

| • | 471,311 shares of Common Stock issuable upon the exercise of contractual settlement rights related to previously issued Common Stock warrants issued in March 2022, and later resold in substantial part, with an average exercise price of $1.66 per share of the issued shares, and an assumed average exercise price of $1.22 related to potential future issuances; and |

| • | 22,222 shares of Common Stock issuable upon the conversion of certain senior secured convertible notes (the “Convertible Notes”) at a price of $22.50 per share (assuming the maximum accrued interest prior to the