This $19M Bet Could Spark the Next Power Rush

Equity Deal Rocks SolarBank—Here's Why Investors May Thank Dr. Lu Later ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

Katusa Special Situations Company Alert: Disseminated on behalf of Solar Bank Corp (NASDAQ:SUUN) It happened quickly—and, for many investors, painfully. SolarBank (Nasdaq.SUUN) just announced up to US$19 million in new equity financing, shaking up the market with fears of dilution. But behind this short-term turbulence lies a bigger vision… One led by CEO Dr. Richard Lu, whose track record shows a knack for turning overlooked sites into profitable renewable energy hubs. High-Stakes Financing, Higher Ambitions At first glance, the share offering might seem like bad news. Existing shareholders worry about dilution, and the stock took a hit. Yet Dr. Lu has been vocal:   “We’re focused on seizing opportunity, not playing it safe." The initial infusion of US$8.5 million now (and potentially an additional US$10.65 million if warrants are exercised) funds battery storage systems (BESS) and a community solar project in New York. Those are two fast-growing niches in an energy starved world. The funds will be used to grow the business with assets that generate long term recurring revenues. Major Backing from the “Bulge Bracket” Moreso, this financing is a show of support from Wall Street. This offering was with a single investor - a multi-billion dollar global investment fund backed by a bulge bracket investment bank that has a large portfolio of energy investments. Who are the “bulge bracket”? These are the largest global banks and include Barclays, Bank of America, Citi, Goldman Sachs, J.P. Morgan, Morgan Stanley and UBS. SolarBank has been very strategic about its capital raising, with its last major equity offering was done over two years ago in March 2023. That offering was for $6 million and in the last fiscal year prior to that offering SolarBank generated $10.2 million in revenue. Two years later SolarBank generated $58.4 million in revenue in its last fiscal year – an increase of over five times. Note: Canadian chart and ticker shown (SUNN.CBOE) The company showed that it can create significant value when it brings in growth capital. Now it has another big war chest to grow, so we’re watching close. Camillus, Jordan Rd and Glen Rd: Turning Landfill into Opportunity Days before the financing, SolarBank unveiled an impressive US$1.06 million incentive from NYSERDA for the 3.26 MW Camillus Project which has sold to, and will build for, Solar Advocate Development in a transaction valued at US$7.3 million. This site, once a closed landfill, is poised to become a community solar facility. Dr. Lu’s team also revealed the 4.3 MW Glen Rd project, expected to power around 500 homes. But the pipeline doesn’t stop there... On March 13, 2025, SolarBank announced a 7.2 MW DC ground-mount solar project in upstate New York called Jordan Rd, Gainesville—expected to power about 850 homes. Along with Camillus and Glen Rd, this new site reinforces the company’s approach of converting dormant land into community solar assets, backed by strong government incentives and a scalable business model. All 3 deals underscore the company’s ability to secure government support, convert neglected land, and create real revenue streams. Why the Stock Drop, Then? Yes, new shares at a lower price often shock markets. It’s a question we asked immediately, but Dr. Lu seems unfazed. He’s shown he can flip adversity into growth, leaning on a pipeline that already exceeds one gigawatt. If management executes, the short-term hit may be a small price for a longer runway of expansions. After all, battery storage and solar remain two of the hottest arenas for clean-energy investment. When Short-Term Pain Leads to Long-Term Gains Volatility spooks investors, but the real question is whether these moves eventually boost SolarBank’s top line. The new capital isn’t wasted—it’s earmarked for building projects that generate revenue and deepen the company’s foothold in key markets. As solar demand surges, especially in incentive-rich states like New York, Dr. Lu is betting big that near-term dilution will pay off.   The Bottom Line Yes, the stock fell on news of new shares. Yes, many investors have no long term vision. But if SolarBank’s projects prove lucrative – not to mention whatever else the SUUN team has in the pipeline - that slump could look like a blip in hindsight. Dr. Lu and his team have turned stumbles into successes before, and they’re clearly striving for a repeat performance. Their announcement are coming fast and furious. And we’re certainly biased watching them hit milestone after milestone. Opportunity often hides in temporary chaos, and SolarBank’s latest moves suggest they’re ramping up for a brighter—and potentially more profitable—future. The question isn’t if they’ll rebound, but how the stock price can respond once these new solar ventures come online. This is a company that’s up 64% YTD, while the Nasdaq is down 6%. Marin Katusa will be sitting down with Dr. Richard Lu in an upcoming interview you don’t want to miss. Regards, The KR Special Situations Team   Further Viewing: This report contains forward-looking information. Please refer to the SolarBank press releases entitled: “$7.3 million USD Transaction Entered into with Solar Advocate Development LLC for the Sale and Construction of the Camillus Solar Project”; “4.3 MW Glen Rd Solar Project in Development by SolarBank in New York”; and “SolarBank Corporation Announces Closing of up to US$19 Million Equity Financing” for additional details on the statements, risks and assumptions. For Real-Time Market Alerts, Follow Us: Share Tweet Share Copyright © 2025, Katusa Research, All rights reserved. PLEASE READ: RETURNS AND TESTIMONIAL DISCLOSURE  Contact Us | Privacy | Terms & Conditions IMPORTANT DISCLAIMER & DISCLOSURES Investing in stocks is HIGH RISK. You could lose all of your investment. Katusa Research, as a publisher, is not a broker, investment advisor, or financial advisor in any jurisdiction. Please do not rely on the information presented by Katusa Research as personal investment advice. If you need personal investment advice, kindly reach out to a qualified and registered broker, investment advisor, or financial advisor. The communications from Katusa Research should not form the basis of your investment decisions. Examples we provide regarding share price increases related to specific companies are based on randomly selected time periods and should not be taken as an indicator or predictor of future stock prices for those companies. SolarBank Corp. is a paid sponsor of this report. The information in this newsletter does not constitute an offer to sell or a solicitation of an offer to buy any securities of a corporation or entity, including U.S. Traded Securities or U.S. Quoted Securities, in the United States or to U.S. Persons. Securities may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and applicable U.S. state securities laws or pursuant to an exemption therefrom. Any public offering of securities in the United States may only be made by means of a prospectus containing detailed information about the corporation or entity and its management as well as financial statements. No securities regulatory authority in the United States has either approved or disapproved of the contents of any newsletter. Katusa Research nor any employee of Katusa Research is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. Katusa Research, its owners, directors, and employees are also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity. HIGHLY BIASED: In our role, we aim to highlight specific companies for your further investigation; however, these are not stock recommendations, nor do they constitute an offer or sale of the referenced securities. Katusa Research partner company, New Era Publishing Inc. has received cash compensation in the amount of nine hundred thousand dollars from SolarBank Corp. for a 6 month marketing agreement starting January 1, 2025, and is thus extremely biased. It is crucial that you conduct your own research prior to investing. This includes reading the companies’ SEDAR and SEC filings, press releases, and risk disclosures. The information contained herein regarding SolarBank Corp. has been derived from its SEDAR+ and SEC filings, including scientific and technical information. Information regarding the projects underlying SolarBank Corp.’s interests has been derived from the publicly available disclosure of the underlying operators and owners, including where referenced herein. Katusa Research, and its directors, employees, and members of their households may own shares of SolarBank Corp (SUUN) and stand to benefit from any increase in the stock price. However, Katusa Research is extremely biased since this is a sponsored editorial. HIGH RISK: The securities issued by the companies we feature should be seen as high risk; if you choose to invest, despite these warnings, you may lose your entire investment. You must be aware of the risks and be willing to accept them in order to invest in financial instruments, including stocks, options, and futures. NOT PROFESSIONAL ADVICE: By reading this, you agree to all of the following: You understand this to be an expression of opinions and NOT professional advice. You are solely responsible for the use of any content and hold Katusa Research, and all partners, members, and affiliates harmless in any event or claim. While Katusa Research strives to provide accurate and reliable information sourced from believed-to-be trustworthy sources, we cannot guarantee the accuracy or reliability of the information. The information provided reflects conditions as they are at the moment of writing and not at any future date. Katusa Research is not obligated to update, correct, or revise the information post-publication. FORWARD-LOOKING STATEMENTS: Certain information presented may contain or be considered forward-looking statements. Such statements involve known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in these statements. There can be no assurance that any such statements will prove to be accurate, and readers should not place undue reliance on such information. These statements are subject to known and unknown risks including those set forth in SolarBank Corp.’s most recent annual information form and other public filings available at www.sedarplus.ca and www.sec.gov. Neither Katusa Research nor SolarBank Corp. undertake any obligations to update the information presented or to ensure that such information remains current and accurate, except as required under applicable law.

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