Pineapple Holdings, Inc. announced that it has signed a security purchase agreement to issue Series A Convertible Preferred Stock for the gross proceeds of $32 million on September 15, 2021. The transaction will include participation from new investor CrowdOut Capital LLC and a group of other institutional investors. The preferred stock convertible at a price of $3.40 per share into common shares.

The company will also issue five-year warrants to purchase an additional $32 million of common shares. The transaction is expected to close immediately following the consummation of the merger transaction. The closing of the transaction is subject to approval of shareholders.

The agreement may be terminated by any investor with respect to their obligation if the transaction has not closed by March 31, 2022. At the closing, the company has agreed to reimburse the lead Purchaser the non-accountable sum of $25,000 for its legal fees and expenses.