SUNation Energy shares surge 40.41% premarket after eliminating $1.1M debt via $800K settlement, cutting monthly payments by $20K and boosting cash flow.

SUNation Energy Inc. surged 40.41% in premarket trading after announcing the elimination of $1.1 million in legacy debt through a $800,000 lump-sum settlement. The restructuring reduced monthly payments from $25,000 to $5,000, freeing $20,000 monthly in cash flow and improving balance sheet flexibility. The debt, tied to a 2021 buyout, had previously required payments until 2031. CEO Scott Maskin highlighted the move as a strategic step to reduce obligations and enhance operational focus. The action follows prior capital structure initiatives, including warrant terminations and contingent value rights distributions, signaling broader financial discipline. The settlement is expected to strengthen liquidity and support long-term growth, directly addressing prior concerns about cash flow constraints.