Company: SUNE
Filing Date: 2025-02-27
Form Type: 424B5
Source: 0001213900-25-017771
Chunk: 70

Company: SUNation Energy, Inc.
Filing Date: 2025-02-27
Form: 424B5
Chunk 70
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 applicable beneficial ownership
limitation provided that the beneficial ownership limitation in no event exceeds 9.99% of the number of shares of common stock outstanding
immediately after giving effect to the issuance of shares of common stock upon conversion of Series A convertible preferred stock held
by the holder. Any increase in the beneficial ownership limitation will not be effective until the 61st day after such notice is delivered
to us and will only apply to the holder giving the notice and no other holder.

If we fail to deliver the conversion shares by
the required delivery date and shares of common stock are purchased to deliver in satisfaction of a sale by such converting holder of
the conversion shares, we will have an obligation to make a cash payment and, that the converting holder’s option, to issue shares
to that holder. The cash obligation will be equal to the amount, if any, by which (x) such holder’s total purchase price (including
any brokerage commissions) for the common stock so purchased exceeds (y) the product of (1) the aggregate number of shares of common stock
that such holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order
giving rise to such purchase obligation was executed (including any brokerage commissions). If the converting holder requires us to issue
shares, then we must either reissue (if surrendered) the shares of Series A convertible preferred stock equal to the number of shares
of Series A convertible preferred stock submitted for conversion (in which case, such conversion will be deemed rescinded) or deliver
to such holder the number of shares of common stock that would have been issued if we had timely complied with its delivery requirements.

If after the 10th trading day following the effective
date of the registration statement for the conversion shares, the volume weighted average price (VWAP) for each trading day during any
10 consecutive trading day period exceeds 200% of the then effective conversion price and the daily dollar trading volume for our common
stock exceeds $5 million on each trading day during this period, we may require each holder to convert all or part of such holder’s
Series A convertible preferred stock plus all accrued but unpaid dividends thereon and all liquidated damages and other amounts due in
respect of the Series A convertible preferred stock. For any shares of Series A convertible preferred stock that remain unconverted and
outstanding because of the beneficial ownership limitation, we may elect to repurchase all or a portion of such unconverted shares from