Stardust Solar Announces Non-Brokered Private Placement of Units

• Financing Announcement: On May 13, 2026, Stardust Solar announced a non-brokered private placement of up to 40,000,000 units at $0.075 per unit for gross proceeds of up to $3,000,000.
• Unit Composition: Each unit includes one common share and one warrant exercisable at $0.10 per share for 18 months.
• Use of Proceeds: Funds are designated for repaying senior secured convertible debentures, advancing the Zambia utility-scale solar project, and general working capital.
• Contextual Progression: This follows a series of operational milestones including a 20-year Power Purchase Agreement (PPA) in Zambia ($60-90M revenue potential), franchise network expansion to over 100 territories, and FY2025 results showing $4.7M revenue with 40% gross margins.
• Debt Repayment: The financing explicitly targets the repayment of senior secured convertible debentures issued in February 2026 ($1M raised), indicating a need to manage near-term debt obligations.

• Dilution Risk: The offering size (40M units) represents significant dilution relative to the company's implied share count, likely increasing the float by 25-30% or more given previous financing tranches of ~10M units each.
• Price Discount: The offering price ($0.075) is below the recent trading range ($0.08-$0.14 in early 2026), constituting a down-round that typically exerts downward pressure on market sentiment and share price.
• Liquidity vs. Growth: While the capital raises liquidity concerns regarding debt repayment, it secures the continuation of the Zambia project which is critical for long-term revenue visibility ($90M PPA).
• Market Expectation: Financing rounds are routine for pre-profitability growth companies; however, the discount price suggests management lacks confidence in immediate upside to command a higher valuation.
• Net Impact: The news is material due to the size of the raise relative to market cap but negative due to dilution and pricing weakness compared to recent trading levels.

• Business Model: Three-pillar recurring revenue model consisting of franchise royalties (100+ territories), certified solar training/licenses, and utility-scale power development.
• Flagship Project: 30MW Utility-Scale Solar Plant in Zambia. Secured a 20-year Power Purchase Agreement (PPA) with ZESCO Limited at US$0.07/kWh. Estimated total contracted revenue potential of $60-90 million over the contract term.
• Development Stage: Transitioning from development to construction phase; Phase 1 (2MW) targeted for completion in 2026.
• Additional Assets: Residential solar leasing platform launched in April 2026 and StarDroid AI energy optimization device distribution rights secured in North America.