March 2022

Pineapple Energy Merges With Communications Systems Inc., Changes Name to Pineapple Holdings

North America - United States

Privately held Pineapple Energy LLC, a growing U.S. operator and consolidator of residential solar, battery storage and grid services solutions, completed its merger with Communications Systems Inc. (CSI), a Nasdaq-listed IoT intelligent edge products and services company. Faegre Drinker represented Pineapple Energy in the merger.

In connection with the closing, the company changed its name to Pineapple Holdings Inc., and its common stock is expected to trade on the Nasdaq Capital Market under the new symbol PEGY. Immediately following the completion of the merger, the company also completed its previously announced private placement of Series A preferred stock and warrants to institutional investors resulting in gross proceeds to the company of $32 million.

Immediately prior to the merger, Faegre Drinker also represented Pineapple Energy in completing the acquisitions of Hawaii Energy Connection (HEC) and E-GEAR, both Hawaii-based sustainable energy solution providers. These follow on Pineapple Energy’s acquisitions of Horizon Solar Power and certain assets of Sungevity in December 2020, in which Faegre Drinker represented Pineapple Energy. In particular, HEC is among the leading solar, battery storage, and distributed energy resource (DER) management companies in the nation's most advanced alternative energy market.

The combined company’s post-merger strategy is to focus on the rapidly growing home solar industry and consolidate other leading regional players, with several acquisition targets already in the due diligence phase.

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