| Item 2.01. | Completion of Acquisition or Disposition of Assets. |
On June 10, 2022, Pineapple Energy Inc. (the "Company") completed the previously announced transaction contemplated by the Purchase Agreement, dated November 18, 2021, as amended pursuant to that certain (i) First Amendment to Purchase Agreement, dated February 15, 2022, (ii) Second Amendment to Purchase Agreement, dated April 11, 2022, (iii) Third Amendment to Purchase Agreement, dated April 25, 2022, and (iv) Fourth Amendment to Purchase Agreement, dated May 26, 2022 (collectively, as amended, the "Purchase Agreement") by and between the Company and Buhl Investors LLC, a Minnesota limited liability company, or its assigns, for the sale of the Company's headquarters building (the "Building") located at 10900 Red Circle Drive, Minnetonka, Minnesota.
Pursuant to the Purchase Agreement, the Company sold the Building for $6.5 million cash. The net proceeds from the sale are expected to be distributed to holders of the Company's contingent value rights by July 30, 2022, after certain adjustments are made for commissions, fees, closing expenses, and any reserves required under terms of the recently completed merger of Pineapple Energy LLC with Communications Systems, Inc., including, without limitation, the application of $410,000 of the proceeds to offset rent payable by the Company during the first 24 months following the commencement date of the lease described below.
Simultaneously with the closing of the sale of the Building, the Company entered into a five-year lease agreement to lease approximately 8,590 square feet of the Building, with an option to renew the lease thereafter for five additional years.
The foregoing descriptions are not intended to be complete descriptions of the Purchase Agreement or the transactions contemplated therein and are qualified in their entirety by reference to the full text of the Purchase Agreement and its amendments, copies of which are filed or incorporated by reference as Exhibits 10.1 through 10.5 attached hereto.