Sunpower Group Ltd. Announces Major Conversion of Convertible Bonds Into Ordinary Shares

Key Highlights of the Corporate Announcement

• Convertible Bonds Converted: From 1 October 2025 to 31 December 2025, certain bondholders exercised their right to convert S\$4,915,489 worth of Convertible Bonds into ordinary shares.
• New Shares Issued: A total of 19,661,956 new ordinary shares have been issued to bondholders at a conversion price of S\$0.25 per share.
• Reduction in Outstanding Bonds: Following this conversion, the aggregate principal amount of Convertible Bonds outstanding has been reduced significantly from S\$98,697,492 to S\$93,782,003.
• Increase in Share Capital: 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).
• Parri Passu Rights: The new Conversion Shares will rank parri passu with all existing shares, except for entitlements (such as dividends or other distributions) where the record date precedes the registration of the new shares.
• Listing Date: The new shares are expected to be listed and quoted on the Main Board of the SGX-ST from 9:00 a.m. on or about 12 January 2026.
• Official Announcement: The announcement is dated 9 January 2026 and signed by Executive Director and CEO, Lin Jiankai.

Key Details and Implications for Shareholders

This corporate action is significant and may be price sensitive for several reasons:

1. Potential Dilution: The issuance of almost 20 million new shares represents a substantial dilution for existing shareholders. While the new shares will have the same rights as existing shares, the larger share base could impact earnings per share (EPS) and potentially weigh on the stock price in the short term.
2. Confidence from Bondholders: The conversion of bonds into equity at S\$0.25 per share may indicate that bondholders see value at current levels, which could be a positive signal regarding the company’s underlying prospects.
3. Improved Capital Structure: By reducing the outstanding convertible bonds, Sunpower Group has also lessened its future obligations for debt repayment and interest, thereby strengthening its balance sheet and potentially improving credit metrics.
4. Increased Trading Liquidity: With a higher number of shares in issue, trading liquidity on the SGX-ST is likely to improve, which may attract more institutional and retail investors.
5. Relevant Dates for Investors: Investors should note the allotment and issuance date of the new shares (9 January 2026) and the expected listing date (12 January 2026), as these could be important for portfolio rebalancing or trading strategies.
6. Dividend Implications: The new shares are eligible for dividends and other corporate actions only if the record date is after their registration. Investors need to be aware of this when considering the timing of conversions and entitlements.

Conclusion

Sunpower Group Ltd.’s recent conversion of convertible bonds is a noteworthy development that could have lasting implications for the company’s share price, capital structure, and investor base. Shareholders and potential investors should closely monitor how the market reacts to the increased share capital and any follow-on announcements related to the use of proceeds or strategic direction in light of the strengthened equity base.

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

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