---
title: "Zeo Energy Secures Convertible Note Financing with White Lion"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/289829071.md"
description: "Zeo Energy secured up to $7.5 million in unsecured convertible promissory notes from White Lion Capital, with an initial $1.5 million funded. The notes carry a 5% interest rate and convert to Class A common stock at a $0.50 floor. Concurrently, TipRanks' AI analyst Spark rates ZEO as Neutral, citing weak financial performance, ongoing losses, and Nasdaq compliance issues despite strong gross margins."
datetime: "2026-06-15T21:04:10.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/289829071.md)
  - [en](https://longbridge.com/en/news/289829071.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/289829071.md)
---

# Zeo Energy Secures Convertible Note Financing with White Lion

Zeo Energy ( (ZEO) ) has shared an update.

On June 9, 2026, Zeo Energy Corp. entered into a Note Purchase Agreement with White Lion Capital for up to $7.5 million in unsecured convertible promissory notes, with an initial $1.5 million funded at the first closing via a $1.67 million note maturing in 24 months at 5% interest. The notes are convertible into Class A common stock at a price tied to market levels but with a $0.50 per share floor, subject to adjustment, and are capped at 19.99% of pre-deal outstanding shares unless shareholders later approve a higher issuance.

The arrangement includes stringent default provisions that can increase principal to 120% on default, Nasdaq-driven conversion caps, and ownership limits that restrict White Lion to under 4.99% or 9.99% beneficial ownership, while also limiting Zeo Energy’s ability to enter competing variable-rate financings without White Lion’s consent. Concurrently, Zeo Energy agreed to register White Lion’s resale of conversion shares with the SEC under a registration rights agreement that imposes penalties if filing and effectiveness deadlines are missed, underscoring the investor’s strong protections in the financing structure.

**Spark’s Take on ZEO Stock**

According to Spark, TipRanks’ AI Analyst, ZEO is a Neutral.

The score is primarily held down by weak financial performance—ongoing losses and negative free cash flow despite strong gross margin—plus a material corporate overhang from Nasdaq bid-price noncompliance. Technicals are only modestly supportive (mixed trend/momentum), and valuation lacks support due to negative earnings and no dividend yield.

To see Spark’s full report on ZEO stock,  
click here.

**More about Zeo Energy**

Zeo Energy Corp., a Delaware corporation, issues Class A common stock listed on Nasdaq and uses structured financing tools such as unsecured convertible promissory notes to fund its operations. The company’s latest capital raise targets institutional investors through privately placed securities that can convert into equity under defined price and ownership constraints.

**Average Trading Volume:** 156,467

**Technical Sentiment Signal:** Sell

**Current Market Cap:** $45.1M

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