On April 17, 2024, Clayton Partners LLC announced that it has spent a significant amount of time with Spruce Power Holding Corporation management and participants in the distributed solar energy industry since June of last year and views the Company is undervalued, based on its own public disclosure, and Clayton Partners goal is to help the Company reach its full potential for its stockholders. However, the departure of Christian Fong from his CEO and board role has added to the uncertainty regarding the go forward path for the Company and no search for a new CEO and the pivot seems unplanned and unorganized. Clayton Partners added that the Company has recently chosen to slow the pace of its stock repurchase plan despite the obvious undervaluation and its recent investor presentation claims a $16 fair value for the shares and yet the Company has failed to repurchase any material amount of its stock at 25% of the Company?s estimated value of its stock.

Clayton Partners stated that it is concerned that none of the Board seem to have a successful track record in renewable energy investing and understand the small cap public company markets which resulted in members of the board overseen a tremendous destruction of shareholder value during their tenure and it is an overhang on the Company?s valuation. Further, Clayton Partners have nominated Jason Stankowski and Clara Nagy McBane as board candidates, who would immediately help with capital allocation decisions and strategic insights on the Company?s position in the public markets and their addition would send a powerful message to the public markets that the current Board and management team are aligned with shareholders.