Company: SUNE
Filing Date: 2025-02-27
Form Type: 8-K
Source: 0001213900-25-017658
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Company: SUNation Energy, Inc.
Filing Date: 2025-02-27
Form: 8-K
Item: Item 7.01
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Item 7.01 Regulation FD Disclosure

Conduit Loan Collateral

As more fully described in our previously filed
periodic reports, on July 22, 2024, the Company obtained bridge loan financing for working capital purposes from Conduit Capital U. S.
Holdings LLC (“ Conduit”), an unaffiliated lender (the “ Original Conduit Note”). Pursuant thereto, Conduit loaned
the principal sum of $1,000,000 to the Company on an original issue (“ OID”) basis of 20% and accordingly, Conduit advanced
$800,000 to the Company (the “ Conduit Loan”). The loans due to Conduit will accrue interest on the unpaid principal amount,
without deduction for the OID, at an annual rate of 20%; provided that payment in full on the Conduit Maturity Date (as defined below)
satisfies the interest accrual on the loans from initial issuance to the Conduit Maturity Date. All such loans are secured by a pledge
of all of the Company’s assets. As a condition to such loan(s), the Company agreed to cause the nomination of a designee of Conduit
for election to its Board of Directors. The loans due to Conduit will become due on July 21, 2025 (the “ Conduit Maturity Date”);
provided that if the Company consummates one or more equity offerings prior to the Conduit Maturity Date in which it derives aggregate
gross proceeds of at least $3.15 million, it will be required to repay the unpaid principal balance of the Initial Conduit Loan, including
the OID, simultaneous with the closing(s) of such offering(s); and further provided that if the Company consummates one or more equity
offerings prior to the Conduit Maturity Date in which it derives aggregate gross proceeds of at least $4.4 million, the Company will be
required to repay the entire unpaid principal amount of all loans due to Conduit, including the OID, simultaneous with the closing(s)
of such offering(s).

On February 26, 2025, the Company entered into
a consent and waiver agreement to the loan agreement with Conduit. In accordance therewith, the Company issued one (1) share of Series
D Preferred Stock to Conduit as further collateral security for the Conduit Loan. The Series D Preferred Stock was issued in accordance
with a Certificate of Designation of Preferences, Rights, and Limitations filed with the State of Delaware on February