Company: SUNE
Filing Date: 2025-03-10
Form Type: DEF 14A
Source: 0001140361-25-007723
Chunk: 11

Company: SUNation Energy, Inc.
Filing Date: 2025-03-10
Form: DEF 14A
Chunk 11
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 maturity date of the Convertible Notes), as well as 400,000 shares of Common Stock issuable upon conversion of the Series D Convertible Preferred Stock, which preferred stock is entitled to vote as a single class on an as converted basis with the common stockholders equal to 400,000 voting shares. |

The increase in the authorized common shares would also be necessary to allow for the issuance of shares of our Common Stock pursuant to the Offering described below in Proposal 3. If our stockholders approve the issuance of

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the Warrants and the adjustment provisions of the Warrants, the exercise of the Warrants (assuming exercise at a floor price of $0.23 for the Series A Warrants and Series B Warrants) could result in the issuance of up to an additional approximately 783 million shares of our Common Stock.

In addition, following the approval and filing of the amendment, the Company may explore additional financing opportunities or strategic transactions that would require the issuance of additional shares of Common Stock, but no such plans are currently in existence and the Company has not begun any negotiations with any party related thereto. If we issue additional shares, the ownership interest of holders of our capital stock will be diluted.

Other than as set forth above, the Company has no current plans, proposals or arrangements to issue any of the additional authorized shares of Common Stock that would become available as a result of the filing of the Certificate of Amendment.

**Effects of the Increase in Authorized Common Stock**

Following the filing of the Certificate of Amendment with the Secretary of State of Delaware, we will have the authority to issue up to 1,000,000,000 shares of Common Stock. These shares may be issued without further stockholder approval at any time (except as such approval may be required in particular cases by our charter documents, applicable law or the rules of any stock exchange on which our securities may be listed), in the discretion of the Board. The authorized and unissued shares may be issued for cash or for any other purpose that is deemed in the best interests of the Company and/or pursuant to existing contractual arrangements.

The increase in our authorized Common Stock could have a number of effects on the Company’s stockholders depending upon the exact nature and circumstances of any actual issuances of authorized but unissued shares. If we issue additional shares of Common Stock or other securities convertible into shares of our Common Stock in the future, it could dilute the voting rights of existing stockholders and could also dilute earnings per share and book value