Company: SUNE
Filing Date: 2025-02-28
Form Type: PRE 14A
Source: 0001140361-25-006563
Chunk: 27

Company: SUNation Energy, Inc.
Filing Date: 2025-02-28
Form: PRE 14A
Chunk 27
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 convertible into or exercisable for Common Stock) which, alone or together with sales by officers, directors or substantial stockholders of the Company, equals 20% or more of the Common Stock or 20% or more of the voting power outstanding before the issuance.

In order to comply with Nasdaq listing rule 5635(d) and permit the second closing of the Offering, the stockholders of the Company need to approve the issuance of the Series A Warrants and the Series B Warrants and the Warrant Shares issuable upon exercise of the Warrants together with the additional shares of our Common Stock that may become issuable upon adjustments provided for under the Series A Warrants and the Series B Warrants and the provisions of the Series A Warrants and the Series B Warrants indicated above, respectively. Until the Company obtains the Warrant Stockholder Approval in order to comply with Nasdaq listing rule 5635(d), the Second Closing will not occur and the Series A Warrants and the Series B Warrants will not be issuable.

**Potential Adverse Effects of the Approval of the Warrant Stockholder Approval Provisions**

Following approval by the stockholders of this proposal, existing stockholders will suffer substantial dilution in their ownership interests in the future as a result of the potential issuance of shares of Common Stock upon exercise of the Warrants. Assuming the full exercise of the Series A Warrants and the Series B Warrants at a Floor Price of $0.23, we may potentially issue an aggregate of up to approximately 783 million shares of Common Stock upon exercise of the Warrants, and the ownership interest of our existing stockholders would be correspondingly reduced.

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#### TABLE OF CONTENTS
The sale into the public market of these shares could materially and adversely affect the market price of our Common Stock.

**Interest of Certain Persons in Matters to Be Acted Upon**

No director or executive officer has any substantial interest, direct or indirect, by security holdings or otherwise, in this Proposal that is not shared by all of our other stockholders.

#### Vote Required
Approval of Proposal No. 3 requires the affirmative vote of the majority of the votes cast on this proposal. Abstentions and broker non-votes are not considered votes cast and will have no effect on the outcome of Proposal No. 3.

Stockholders on the record date who participated in and purchased securities in the Offering that closed on February 27, 2025 (related to Issuance Proposal 3) may