Sunpower Group Ltd. Announces Conversion of Convertible Bonds and Issue of New Shares

Key Developments Investors Should Note

• Conversion of Convertible Bonds: Between 1 October 2025 and 31 December 2025, certain bondholders exercised their rights to convert a portion of their Convertible Bonds, amounting to S\$4,915,489, into new ordinary shares of Sunpower Group Ltd.
• Issuance of New Shares: As a result of these conversions, a total of 19,661,956 new ordinary shares (the “Conversion Shares”) have been issued to the bondholders at a conversion price of S\$0.25 per share.
• Reduction in Outstanding Convertible Bonds: The aggregate principal amount of outstanding Convertible Bonds has been reduced from S\$98,697,492 to S\$93,782,003.
• Increase in Share Capital: Following the issuance, the Company’s total issued and paid-up share capital has increased from US\$7,987,392.42 (798,739,242 shares) to US\$8,184,011.98 (818,401,198 shares).
• Listing of New Shares: The newly issued Conversion Shares are expected to be listed and quoted on the Main Board of the Singapore Exchange Securities Trading Limited (SGX-ST) from 9:00 a.m. on or about 12 January 2026.

Important Information for Shareholders

• Potential Dilution: The issuance of 19,661,956 new shares represents an increase of approximately 2.5% in the total issued share capital. Existing shareholders should note the potential dilution of their holdings as a result of this conversion.
• Ranking of Conversion Shares: The Conversion Shares will rank pari passu in all respects with existing shares, except for any dividends, rights, or other distributions declared where the record date precedes the registration date of the new shares. This means new shares will not participate in distributions declared before their registration.
• Implications for Share Price: The conversion price of S\$0.25 may be relevant to investors, particularly if it differs from the prevailing market price. Large-scale conversions at a lower price could exert downward pressure on market price due to increased supply.
• Reduction of Convertible Debt: The company’s outstanding convertible debt has decreased, which could improve leverage ratios and may be viewed positively from a balance sheet perspective.
• Liquidity and Free Float: With the listing of new shares, liquidity in the company’s shares may improve, potentially attracting greater investor interest.

Further Details

• The conversion was carried out in accordance with the terms and conditions set out in the Trust Deed, as detailed in the Company’s Offer Information Statement lodged with the Monetary Authority of Singapore on 10 March 2025.
• The executive director and CEO, Lin Jiankai, confirmed the allotment and issuance of the Conversion Shares on 9 January 2026.

Conclusion

The conversion of these bonds and the resultant increase in share capital is a significant event for Sunpower Group Ltd. shareholders. It impacts share dilution, the company’s capital structure, and could influence share price dynamics due to the conversion price and increased float. Investors should monitor the market reaction when the new shares begin trading on the SGX-ST from 12 January 2026.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence or consult a professional advisor before making investment decisions.

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