Company: SUNE
Filing Date: 2025-02-27
Form Type: 8-K
Source: 0001213900-25-017666
Chunk: 1

Company: SUNation Energy, Inc.
Filing Date: 2025-02-27
Form: 8-K
Item: Item 1.01
Chunk 1
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isable commencing
upon issuance and expiring upon the exercise of the Pre-Funded Warrants in full, at an exercise price of $0.001 per share, subject to
certain adjustments set forth therein.

A holder (together with its affiliates) may not
exercise any portion of the Series A Warrant, Series B Warrant or Pre-Funded Warrant to the extent that the holder would own more than
4.99% (or, at the holder’s option upon issuance, 9.99%) of the Company’s outstanding common stock immediately after exercise.
However, upon at least 61 days’ prior notice from the holder to the Company, a holder with a 4.99% ownership blocker may increase
the amount of ownership of outstanding common stock after exercising the holder’s Series A Warrant, Series B Warrant or Pre-Funded
Warrant up to 9.99% of the number of the Company’s common stock outstanding immediately after giving effect to the exercise, as
such percentage ownership is determined in accordance with the terms of the Series A Warrant, Series B Warrant or Pre-Funded Warrant.

The Purchase Agreement contains customary
representations and warranties and agreements of the Company and the Purchaser and customary indemnification rights and obligations
of the parties. The first closing of the Offering is expected to occur on or about February 27, 2025, subject to satisfaction of
customary closing conditions. The second closing of the Offering can only occur after receipt of approval by the Company’s
stockholders in a specially called stockholder meeting to approve the issuance of the Series A Warrants, Series B Warrants and the
shares of Common Stock underlying such Warrants, in addition to other matters. The Company is expected to receive gross proceeds of
approximately $20 million (assuming the consummation of the second closing) in connection with the Offering, before deducting
placement agent fees and related offering expenses.

On February 27, 2025, pursuant to the Purchase
Agreement, the Company entered into lock-up agreements (the “ Lock-up Agreements”) with its directors, officers and certain
principal shareholders, pursuant to which they will not offer, sell, contract to sell, hypothecate, pledge or otherwise dispose of any
of the Company’s equity securities for a period of 90 days following the each closing of the Offering, subject to certain exceptions.

Pursuant to placement agent agreement (the “ Placement Agency
Agreement”) dated as of