Pineapple Energy Launches Next Phase of Corporate Development
March 30 2022 - 5:03PM
Pineapple Energy (“Pineapple”), a leading provider of sustainable
solar energy and back-up power to households and small businesses,
today launched its next phase of corporate development after the
closing of the merger between Pineapple Energy LLC and
Communications Systems Inc. (“CSI”). Pineapple is now
publicly traded on the Nasdaq market under the symbol PEGY.
Elaborating on its growth strategy, Pineapple CEO Kyle Udseth
stated, “We are in preliminary discussions on several potential
acquisitions. These companies all have high quality management
teams and proven market leadership. We see a strong cultural fit
with each company and believe that every one of the targets can
bring us unique product capabilities and/or access to new markets.
The owners of these businesses are all anticipating more
substantive discussions now that Pineapple has closed the CSI
merger.”
Roger Lacey, Chairman of Pineapple Energy, noted, “I am excited
about the opportunities in front of Pineapple. We appreciate the
support of CSI shareholders and are pleased to welcome the PIPE
investors to the Pineapple family. We are confident that Pineapple
can execute its M&A strategy with this strong shareholder
support as a foundation.”
Acquisition Strategy
Pineapple closed the concurrent acquisitions with Hawaii Energy
Connection (“HEC”) and E-Gear. These acquisitions add to
Pineapple’s initial acquisitions of Sungevity and Horizon Solar.
Pineapple estimates that HEC and E-Gear combined generated
approximately $19 million of revenue in 2021 and expects them to
generate a combined $23 to $25 million of revenue in 2022.
The company intends to actively pursue additional acquisitions
in addition to driving organic growth. Pineapple is actively
building a pipeline of potential acquisition partners. The Company
believes there are dozens of regional residential rooftop solar
installers across the U.S. that could benefit from the synergy of
being part of a larger organization with national brand
recognition, volume purchasing power, and the support of
sophisticated marketing, operations, and administrative systems.
Pineapple also expects to explore possible business combinations
with leading energy technology solution providers which would
expand Pineapple’s energy management solutions capabilities.
Through a steady flow of acquisitions, Pineapple believes it can
grow into one of the nation’s leading residential solar and energy
storage suppliers.
In conjunction with the merger with CSI, Pineapple closed on a
$32 million concurrent offering of preferred stock and warrants.
The net proceeds are being used for expenses related to the CSI
merger, the HEC and E-Gear mergers, and general corporate
expenses.
Leadership
Pineapple will be led by Kyle Udseth as Chief Executive Officer
and Mark Fandrich as Chief Financial Officer. Kyle was formerly the
CEO of Pineapple Energy LLC; Mark was formerly the CFO of CSI.
Former HEC and E-Gear CEO Chris DeBone will lead Pineapple’s
Product and Technology efforts and apply his expertise on public
policy and utility relations.
Pineapple has formally appointed to its Board of Directors
Marilyn Adler, the founder and Managing Partner of
Mizzen Capital, and Tom Holland, the Chief
Operating Officer of Homebound Inc., a California-based housing
company.
Marilyn and Tom join a Board that now consists of Kyle
Udseth, Chief Executive Officer of Pineapple Holdings;
Roger Lacey, former executive chairman of CSI;
Randall Sampson, president, chief executive
officer, and a board member of Canterbury Park Holding;
Scott Honour, Managing Partner of Northern Pacific
Group; and Michael Zapata, Chief Executive Officer
of Schmitt Industries.
Disposition of Former CSI Assets
Former CSI shareholders of record as of the close of business on
Friday, March 25, 2022 received one contractual non-transferable
Contingent Value Right (CVR) per share of CSI common stock held,
which entitles the CVR holder to a portion of the proceeds of
dispositions of CSI’s pre-merger assets after the effective time of
the merger. Pineapple intends to complete the disposition of CSI
assets as quickly as possible while maximizing the value it can
realize from those sales.
Forward-Looking Statements
This press release includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding future financial
performance, future growth, and future acquisitions. These
statements are based on Pineapple Energy’s current expectations or
beliefs and are subject to uncertainty and changes in
circumstances. Actual results may vary materially from those
expressed or implied by the statements here due to changes in
economic, business, competitive or regulatory factors, and other
risks and uncertainties, including those described in “Risks
Related to the Combined Company Following Consummation of the
Merger” in Item 1A of the Company’s Form 10-K for the fiscal year
ended December 31, 2021 filed with the Securities and Exchange
Commission on March 14, 2022 and other factors set forth in the
company’s filings with the Securities and Exchange Commission. The
forward-looking statements in this press release speak only as of
the date of this press release. Pineapple Energy does not undertake
any obligation to update or revise these forward-looking statements
for any reason, except as required by law.
About Pineapple Energy
Pineapple Holdings, Inc., which does business as Pineapple
Energy (f/k/a Communications Systems, Inc.) (Nasdaq: PEGY), is
focused on growing leading local and regional solar, storage, and
energy services companies nationwide. Our vision is to power the
energy transition through grass-roots growth of solar electricity
paired with battery storage. Our portfolio of brands, Hawaii Energy
Connection, E-Gear, Sungevity and Horizon Solar Power, provide
homeowners and small businesses with an end-to-end product offering
spanning solar, battery storage, and grid services.
Contacts: |
For Pineapple
EnergyMark FandrichChief Financial Officer+1 (952)
582-6416mark@pineappleenergy.com The Blueshirt GroupGary
Dvorchak, CFAManaging Director+1 (323)
240-5796gary@blueshirtgroup.com |
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