ROSEVILLE, Calif., Jan. 29, 2020 (GLOBE NEWSWIRE) -- Sunworks, Inc. (SUNW), a provider of solar power solutions for agriculture, commercial and industrial (ACI), public works and residential markets, today announced that the company has agreed to an amendment to its loan agreement with CrowdOut Capital, LLC, whereby the company will reduce the outstanding balance of its $3.0 million senior note due January 31, 2021 by $1.5 million.
As part of this amendment, CrowdOut has waived its right to appoint a board member to the company’s board of directors; provided, Sunworks continues to comply with the remaining obligations under the loan. As a result, Josh Schechter has announced his resignation from the board, effective immediately and the board of directors will be reduced from six directors to five. In addition, the four remaining independent directors have named Chuck Cargile, Sunworks Chief Executive Officer, as the Company’s new Chairman.
Chuck Cargile, Sunworks Chief Executive Officer, commented, “The term loan has provided us financial flexibility as we work through the process of restructuring the business. We have right-sized our cost structure and expect to generate positive cash flow in 2020. With our rationalized cost structure and proceeds from the sale of common stock under our “at-the-market” offering, we believe the best use of our cash is to reduce the senior secured note payable to CrowdOut. We further believe that, based on our current balance sheet, cash conversion expectations and the access to capital through our” at-the-market” offering, we have the liquidity we need to execute on our current strategy.”
Information concerning the amendment can be found in our Current Report on Form 8-K filed with the Securities and Exchange Commission.
About Sunworks, Inc.
Sunworks, Inc. (SUNW) is a premier provider of high performance solar power systems. Sunworks is committed to quality business practices that exceed industry standards and uphold its ideals of ethics and safety. Sunworks continues to grow its presence, expanding nationally with regional and local offices. The company strives to consistently deliver high quality, performance-oriented solutions for customers in a wide range of industries including agricultural, commercial and industrial, federal, public works, and residential. Sunworks’ dedication to excellence is reflected in its 25-year warranty, a benchmark that it stands by to support its customers above and beyond their expectations. Sunworks’ diverse, seasoned workforce includes distinguished veterans who bring a sense of pride, discipline, and professionalism to their interaction with customers. All Sunworks’ employees uphold its guiding principles each day. Sunworks is a member of the Solar Energy Industries Association (SEIA) and is a proud advocate for the advancement of solar power. For more information, visit www.sunworksusa.com
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