SPI
Spi Energy Co, LTD
NASDAQ
8-K: SPI Energy Amends Settlement Agreement with Streeterville Capital, Outlines Staged Payment Plan
Sentiment:
Current Report
11 February 2025 12:46 PM
SPI Energy Co., Ltd. and Streeterville Capital, LLC agree to a fifth addendum to their Deed of Settlement, modifying the payment schedule for a $2.1 million trigger payment.
Worse than expected
The need for a fifth addendum to the Deed of Settlement suggests that SPI Energy is struggling to meet its original financial obligations.
Delay expected
The fifth addendum delays the final payment of the $2,100,000 trigger payment to June 30, 2025.
Summary
- SPI Energy Co., Ltd. has entered into a fifth addendum to its Deed of Settlement with Streeterville Capital, LLC.
- The addendum modifies the payment schedule for a $2,100,000 trigger payment.
- The trigger payment will now be paid in staged payments between January 31, 2025, and June 30, 2025.
- Late payments will incur a fee of $1,000 per day.
- A $20,000 payment made on January 17, 2025, is considered a restructuring fee.
- All other terms of the original Deed of Settlement and previous addendums remain unchanged.
Sentiment
Score: 4
Explanation: The sentiment is slightly negative due to the repeated amendments to the settlement agreement, indicating potential financial strain on SPI Energy. The late fee provision also adds a layer of risk.
Positives
- The agreement provides SPI Energy with a structured payment plan, potentially easing immediate financial pressure.
- The staged payments may allow SPI Energy to manage its cash flow more effectively.
Negatives
- The daily late fee of $1,000 could quickly add up if payments are not made on time, increasing SPI Energy's financial burden.
- The need for a fifth addendum suggests ongoing difficulties in meeting the original settlement terms.
Risks
- Failure to meet the payment deadlines outlined in the addendum could result in significant late fees.
- The reliance on staged payments indicates potential cash flow constraints for SPI Energy.
- The ultimate trigger for the payment is still linked to the SolarJuice IPO or listing, which introduces uncertainty.
Future Outlook
The payment of $2.1 million is contingent on the earlier of the closing of the SolarJuice IPO, SolarJuice being listed for trading, or the completion of the staged payments by June 30, 2025.
Industry Context
Settlement agreements and their subsequent amendments are common in business disputes. The specific terms, such as staged payments and late fees, are negotiated based on the financial circumstances of the parties involved. The fact that this settlement relates to SolarJuice indicates that the performance of that entity is critical to SPI Energy's ability to meet its obligations.
Comparison to Industry Standards
- It is difficult to compare this specific settlement agreement to industry standards without knowing the details of the underlying dispute.
- However, staged payments and late fees are common features in settlement agreements across various industries.
- Comparable companies in similar situations might include those undergoing restructuring or facing litigation, where settlement agreements are often used to resolve disputes.
Stakeholder Impact
- Shareholders may be concerned about the company's ability to meet its financial obligations.
- Creditors may be monitoring the situation closely to assess the risk of default.
- Employees may experience uncertainty if the company's financial situation remains unstable.
Next Steps
- SPI Energy must adhere to the new staged payment schedule to avoid incurring late fees.
- SPI Energy needs to monitor the progress of the SolarJuice IPO or listing, as this could trigger the payment obligation earlier.
- Streeterville Capital will monitor payments and assess late fees if applicable.
Key Dates
- March 6, 2024: Date of the original Deed of Settlement.
- May 24, 2024: Date of the first Addendum to the Deed of Settlement.
- July 15, 2024: Date of the second Addendum to the Deed of Settlement.
- September 13, 2024: Date of the third Addendum to the Deed of Settlement.
- November 11, 2024: Date of the fourth Addendum to the Deed of Settlement.
- January 17, 2025: Date of $20,000 restructuring fee payment.
- January 23, 2025: Date of the fifth Addendum to the Deed of Settlement.
- January 31, 2025: First staged payment of $25,000 due.
- February 14, 2025: Second staged payment of $100,000 due.
- February 28, 2025: Third staged payment of $125,000 due.
- March 14, 2025: Fourth staged payment of $125,000 due.
- March 28, 2025: Fifth staged payment of $125,000 due.
- April 11, 2025: Sixth staged payment of $200,000 due.
- April 25, 2025: Seventh staged payment of $200,000 due.
- May 9, 2025: Eighth staged payment of $250,000 due.
- May 23, 2025: Ninth staged payment of $250,000 due.
- June 6, 2025: Tenth staged payment of $250,000 due.
- June 20, 2025: Eleventh staged payment of $250,000 due.
- June 30, 2025: Final staged payment of $200,000 due.
- February 11, 2025: Date of report.
Keywords
SPI Energy, Streeterville Capital, Deed of Settlement, Addendum, Trigger Payment, Staged Payments, Late Fee, SolarJuice, Settlement
SPI
Spi Energy Co, LTD
NASDAQ
Sector: TBD
Filings with Classifications
Delay expected
11 February 2025 12:46 PM
Current Report
- The fifth addendum delays the final payment of the $2,100,000 trigger payment to June 30, 2025.
Worse than expected
11 February 2025 12:46 PM
Current Report
- The need for a fifth addendum to the Deed of Settlement suggests that SPI Energy is struggling to meet its original financial obligations.
Worse than expected
5 February 2025 9:06 AM
Current Report (8-K)
- The resignation of an independent director due to concerns about cash flow and governance is worse than expected.
- The Nasdaq suspension of trading is worse than expected.
- The failure to pay director's fees is worse than expected.
Delay expected
5 February 2025 9:06 AM
Current Report (8-K)
- The company failed to file the annual report for 2023 by the prescribed deadline.
Worse than expected
14 January 2025 9:43 PM
Current Report
- The company's shares are being delisted from the Nasdaq due to violations of listing rules.
- The company failed to file required reports with the SEC in a timely manner.
- The company's share price remained below $1 for 30 consecutive business days.
- The company failed to hold its annual shareholder meeting.
Delay expected
14 January 2025 9:43 PM
Current Report
- The company's Annual Report on Form 10-K for the year ended December 31, 2023 was delayed.
- The company's Quarterly Reports on Form 10-Q for the quarters ended March 31, June 30 and September 30, 2024 were delayed.
Delay expected
10 January 2025 9:02 AM
Settlement Agreement Announcement
- The side letter acknowledges that the Greek banks may require modifications to the Athens Injunction Judgement, potentially delaying the release of the first installment.
- The side letter allows for an extension of the timeline for the release of the first installment if delays are caused by the Greek banks or other conditions.
Capital raise
10 January 2025 9:02 AM
Settlement Agreement Announcement
- The settlement agreement mentions that SPI will need to raise funds to cover the second and third installments.
- SPI is exploring potential financing options, including pre-IPO capital raising through the split listing of its European solar projects.
Better than expected
10 January 2025 9:02 AM
Settlement Agreement Announcement
- The settlement resolves a long-standing dispute at a lower cost than originally anticipated.
- The reintegration of the Greek solar projects is expected to significantly increase the company's revenue and capacity.
Delay expected
21 November 2024 4:51 PM
Delisting Notice
- The company has delayed filing its Form 10-Q for the period ended September 30, 2024.
Worse than expected
21 November 2024 4:51 PM
Delisting Notice
- The company received a delisting notice from Nasdaq due to a failure to file its quarterly report, which is a negative development.
Worse than expected
23 October 2024 4:33 PM
Delisting Notice
- The company received a delisting notice from Nasdaq due to non-compliance with listing rules, indicating worse than expected performance.
Delay expected
23 October 2024 4:33 PM
Delisting Notice
- The company failed to file its Form 10-K for 2023 and Form 10-Q for Q1 and Q2 2024 by the required deadlines.
Worse than expected
17 October 2024 4:30 PM
Delisting Notice
- The company failed to meet the minimum bid price requirement and failed to file required financial reports, leading to a delisting notice.
Delay expected
17 October 2024 4:30 PM
Delisting Notice
- The company failed to file its 2023 Form 10-K and Q1 and Q2 2024 Form 10-Q reports by the required deadline.
Delay expected
26 August 2024 4:30 PM
Regulatory Filing
- The company has delayed filing its 2023 annual report and Q1 and Q2 2024 quarterly reports.
Worse than expected
26 August 2024 4:30 PM
Regulatory Filing
- The company has received a third notice of non-compliance from Nasdaq, indicating a worsening situation regarding its financial reporting.
Worse than expected
21 May 2024 5:00 PM
Regulatory Filing
- The company has received a second non-compliance notice from Nasdaq, indicating a worsening situation regarding their financial reporting.
Delay expected
21 May 2024 5:00 PM
Regulatory Filing
- The company has delayed filing both its annual report for 2023 and its quarterly report for Q1 2024.
Worse than expected
25 April 2024 4:30 PM
Delisting Notice
- The company's share price has been below the minimum bid price requirement for an extended period, leading to the transfer to the Nasdaq Capital Market and the need for a second extension to regain compliance.
Worse than expected
22 April 2024 4:15 PM
8-K Filing
- The company has failed to meet the deadline for filing its annual report, which is a negative indicator of its financial reporting processes.
Delay expected
22 April 2024 4:15 PM
8-K Filing
- The company's 2023 annual report is delayed, leading to a non-compliance notice from Nasdaq.
Worse than expected
20 March 2024 4:39 PM
Settlement Agreement Announcement
- The company was facing a winding up petition, indicating significant financial distress.
- The company had to agree to a settlement to avoid liquidation, which includes a large repayment amount.
- The company failed to repay its debts, leading to the winding up petition.
Delay expected
20 March 2024 4:39 PM
Settlement Agreement Announcement
- The settlement agreement replaces a prior agreement, delaying the repayment timeline from April 8, 2024 to December 31, 2024.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.