Pineapple Energy announces 35c distribution to CVR holders

Pineapple Energy (PEGY) will distribute to the holders of its non-transferable Contingent Value Rights a payment of $850,269, or $0.35 per CVR. Pursuant to the merger of Communications Systems and Pineapple, which was completed on March 28, 2022, CSI shareholders of record at the close of business on March 25, 2022 received one contractual, non-transferable CVR per share of CSI common stock. Subject to the terms of the Contingent Value Rights Agreement dated March 25, 2022 and amended on March 27, 2024, which governs the rights of Pineapple and the CVR Holders, each CVR represents the right to receive a pro rata portion of net proceeds available from the disposition of CSI’s premerger assets following the Merger. In addition to the distribution to all CVR Holders, a nominal amount will be paid solely to the Pineapple Energy Employee Stock Ownership Plan with respect to the CVRs held by the ESOP to permit the orderly termination of the ESOP in 2024. The ESOP acquired its CVRs at the time of the Merger for CSI shares allocated to the accounts of CSI employees and former employees.