Minnetonka-based Pineapple Energy Inc. (NASDAQ:PEGY) announced this week a significant reshuffle in its Board of Directors, following the departure of two board members. Scott Honour resigned on Monday, and Thomas J. Holland followed suit on Friday, both leaving their positions without citing disputes or disagreements with the company's operations, policies, or practices.
The company expressed gratitude for the contributions and leadership of both Honour and Holland during their tenure. To fill the vacancy left by Honour, the Board appointed Spring Hollis as a director on Thursday. Hollis will also take on roles in the Audit and Finance Committee and chair the Nominating and Corporate Governance Committee. She will serve until the 2025 Annual Meeting of Shareholders or until her successor is elected and qualified.
Hollis's appointment and compensation align with the company's non-employee director arrangements as disclosed in the definitive proxy statement for Pineapple Energy's 2024 Annual Meeting of Shareholders. The telecommunications apparatus company headquartered at 10900 Red Circle Drive in Minnetonka, Minnesota, has not yet announced a replacement for Holland.
This corporate update is based on a press release statement filed with the Securities and Exchange Commission on August 23, 2024. Pineapple Energy Inc., formerly known as Pineapple Holdings, Inc., and before that as COMMUNICATIONS SYSTEMS INC, continues to operate in the manufacturing sector under the SIC code 3661.
In other recent news, Pineapple Energy Inc. has regained compliance with Nasdaq's stockholders' equity requirements, following a series of strategic efforts. The company has also secured over $1 million in initial capital fundraising, in collaboration with Conduit Capital and MBB Energy, which aligns with its growth plans and is expected to stabilize its short-term financial needs. Furthermore, Pineapple Energy has expanded its authorized shares of common stock from 7,500,000 to 133,333,333, following a shareholder vote.
Amendments have been made to Pineapple Energy's 2022 Equity Incentive Plan, including an increase in the number of shares available for issuance and an adjustment for a 1-for-15 reverse stock split, executed in June 2024. Despite a decrease in Q1 2024 revenue and gross profit, the company reported an increase in net income from continuing operations by 146%, totaling $1.2 million.
In addition to these financial developments, Pineapple Energy has entered into two separate bridge loan agreements for working capital purposes, totaling $1 million in principal amount. The loans were secured from Conduit Capital U.S. Holdings LLC, an unaffiliated lender, and MBB Energy, LLC, an affiliate of the company. These are the recent developments in Pineapple Energy's financial and operational landscape.
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