Sunworks has amended its loan agreement with CrowdOut Capital, reducing the outstanding balance of its $3 million term loan 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 resigned 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 CEO, as the Company’s new chairman.
“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,” said Cargile._x000D_
Sunworks is a provider of high performance solar power systems.
