Company: SUNE
Filing Date: 2025-02-27
Form Type: 424B5
Source: 0001213900-25-017771
Chunk: 69

Company: SUNation Energy, Inc.
Filing Date: 2025-02-27
Form: 424B5
Chunk 69
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 Series A convertible preferred stock
will be convertible, at any time after issuance and at the option of the holder, into a number of shares of our common stock determined
by dividing the “Stated Value” of such share by the “Conversion Price.” The Stated Value per share of Series A
convertible preferred stock is $1,000 and the Conversion Price per share of Series A convertible preferred stock is $13.60, subject to
adjustment. The shares of common stock issuable upon conversion of the Series A convertible preferred stock are referred to as the “conversion
shares.”

The conversion price is subject to adjustment if,
at any time while the Series A convertible preferred stock is outstanding, we issue, sell, publicly announces the contemplated issuance
or sale of, or are deemed to have issued or sold, any shares of common stock or common stock equivalents for an effective price per share
that is lower than the then conversion price, subject to limited exceptions for exempt issuances. In the case of any such dilutive issuance,
the conversion price then in effect will be reduced to an amount equal to the lesser of the effective price per share in such dilutive
issuance and the lowest volume weighted average price (VWAP) of our common stock on any trading day during the 5 trading days immediately
following the public announcement of the execution of the dilutive issuance. If we enter into a Variable Rate Transaction, despite the
prohibition set forth in the securities purchase agreement, we will be deemed to have issued common stock or common stock equivalents
at the lowest possible price, conversion price or exercise price at which such securities may be issued, converted or exercised.

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We will not effect any conversion of the Series
A convertible preferred stock, and a holder will not have the right to convert any portion of the Series A convertible preferred stock,
to the extent that, after giving effect to the conversion, such holder together with such holder’s affiliates and other attribution
parties would beneficially own in excess of the beneficial ownership limitation. The beneficial ownership limitation is 4.99% (or, upon
election by a holder prior to the issuance of any Series A convertible preferred stock, 9.99%) of the number of shares of common stock
outstanding immediately after giving effect to the issuance of shares of common stock issuable upon conversion of the Series A convertible
preferred stock held by the applicable holder. A holder, upon notice to us, may increase or decrease its