Pineapple Energy Inc. (NASDAQ:PEGY) Stock Rallies After Lease Termination for Former Minnesota Headquarters
This morning, the Pineapple Energy Inc. (NASDAQ:PEGY) stock is expected to be in sharp focus among investors after it delivered gains of 48% last Friday. In this feature, you would get a closer look at the developments that led to the rally.
Pineapple Energy Announces Lease Termination for Former Minnesota Headquarters: Move Expected to Produce Total Savings of Approximately $480,000
The company hit the news cycle on October 17 after it announced the termination of the operating lease for its previous corporate office located in Minneapolis, Minnesota. In the news release, Pineapple Energy Inc. announced that the lease was contracted to expire in 2027.
Owing to the termination of the lease, the company would be able to save around $17,500 a month, which would work out to more than $210,000 in associated rent. However, the company did have to pay out a one-time buyout fee in order to facilitate the termination. The fee would be paid over a period of 14 months.
Key Details
The company stated that once the remaining years on the lease, associated costs, and the one-time buyout fee are all taken into consideration, the total saving for Pineapple Energy would come to around $480,000.
The company stated that the termination was a positive step in its quest to cut costs and was also a demonstration of its goal to consolidate its operations at the primary markets in Hawaii and Long Island, New York.
Management Comment
“The termination of this lease is another positive step in our ongoing cost reduction initiatives and reflects our efforts to centralize the company’s operations in our current primary markets of Long Island, NY, and Hawaii,” said Scott Maskin, Interim Chief Executive Officer. “We are authoring a new future for the company, an important part of which is properly aligning our cost structure to help us deliver long-term value to our shareholders.”
Fundamentals
| P/E Ratio | -0.01 |
| PEG Ratio | 0.02 |
| Price to Book | -0.11 |
| Price to Cash Flow | – |
| Price to Free Cash Flow | – |
| Total Sales (TTM) | 64.50 M |
| Revenue per Share (TTM) | 514.39 |
| Shares Outstanding | 309.763 K |
| Share Float (%) | 11.26 M (3636.20%) |
| % Held by Institutions | 23.20 |
