Pineapple Energy Announces Payment to CVR Holders of $1.25 per CVR

Pursuant to the merger of Communications Systems Inc. (CSI) and Pineapple Energy, Inc., which was completed on March 28, 2022, CSI shareholders of record at the close of business on March 25, 2022 (the “CVR Holders”) received one contractual, non-transferable contingent value right (“CVR”) per share of CSI common stock. Each CVR represents the right to receive a pro rata portion of proceeds available from the disposition of CSI’s premerger assets during the 24-month period following the effective time of the merger.

Today Pineapple announced it will make a further payment of proceeds from CSI’s premerger assets of $1.25 per CVR. This payment of $1.25 per CVR is not a taxable event. Please refer to Pineapple’s IRS Form 8937 posted at https://ir.pineappleenergy.com/financial-information/cvr and Pineapple’s March 29, 2023 Form 8-K Report providing “Important Information for Holders of Contingent Value Rights” which is posted at https://ir.pineappleenergy.com/sec-filings/all-sec-filings/content/0000897101-23-000130/pegy230377_8k.htm for more information.

We expect that the $1.25 per CVR payment to the CVR Holders will commence by September 29, 2023.

Contacts:

Pineapple EnergyKyle UdsethChief Executive Officer+1 (952) [e-mail]

Eric IngvaldsonChief Financial Officer+1 (952) [e-mail]