Communications Systems, Inc. Announces Partial Adjournment of Special Meeting for Proposal #1, Pineapple Merger Proposal|||

– Proposal #ane – Pineapple Merger Proposal – Requires Approval from 2/iii of Outstanding Shares

– Other Proposals Required for Merger Were Canonical

– CSI Urges Shareholders to Vote

MINNETONKA, Minn.–(BUSINESS WIRE)–Communications Systems, Inc. (Nasdaq: JCS) (“CSI” or the “Company”) today announced that information technology conducted its special meeting of shareholders and adjourned the meeting solely with respect to Proposal #1, the proposal to approve the merger transaction with Pineapple Free energy LLC. Proposal #1, along with the other proposals, is described in the proxy statement/prospectus dated February iii, 2022. The adjourned special meeting will be held on Wednesday, March 23, 2022 at one:00 p.m. Central Time.

As of March 16, 2022, over viii.5 million shares of CSI common stock, representing approximately 87.half dozen% of all shares outstanding as of the record appointment, accept been voted.

All proposals received very strong back up from shareholders, with Proposals #2-iv and #half dozen-ix existence approved by CSI shareholders. Proposal #5, the Article IX Amendment Proposal, was not approved due to the high threshold for approval and is not a condition to the merger with Pineapple.

More than 63% of the CSI total outstanding shares take already voted in favor of Proposal #1. To be canonical, Proposal #1 requires the affirmative vote of at to the lowest degree two-thirds (66.67%) of CSI total outstanding shares.

Roger Lacey, Executive Chair and Interim Main Executive Officer of CSI, commented, “We are very encouraged by the shareholders that have already voted and the clear and strong support they have expressed for all of the proposals. In terms of Proposal #one, we demand at least two-thirds of all of CSI’s shares outstanding every bit of the record appointment, to vote in favor of this proposal for it to laissez passer. I cannot understate the importance the approval of Proposal #1 would have for the hereafter of CSI and the value of our shareholders’ investment in their CSI common stock. The CSI board of directors unanimously recommends that CSI shareholders vote FOR Proposal #ane, to corroborate the merger with Pineapple.”

“For CSI shareholders who hold their shares in street proper noun, I want to urge you to instruct your broker, bank, or other nominee to vote your shares on Proposal #1. They cannot cast a vote on Proposal #1 without your instruction. For those CSI shareholders that have simply not returned their proxies, a failure to vote on Proposal #1 has the same effect as a vote against Proposal #1. Your vote is very of import regardless of the number of CSI shares you own. Please take a moment to vote your shares now,” ended Mr. Lacey.

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Because CSI shareholders approved the contrary stock dissever, the CSI board of directors will be analyzing whether to effect a reverse stock split and if then the timing and the ratio of the reverse stock divide within a range of 1-for-iii to 1-for-six that was canonical past CSI shareholders.

The adjourned special meeting will go on to be held online at world wide Too, the record date for determining CSI shareholders eligible to vote at the special meeting will remain the close of business on Jan 27, 2022.

How To Vote

Delight use the voting control number that accompanied your proxy materials and vote your shares today. To take your shares represented at the special meeting as soon as possible, please utilize one of the post-obit methods beneath:

  • Vote by Internet:
  • Vote by phone: 1 (800) 690-6903

For additional questions or if you need assistance with voting, please call our solicitor Proxy Advisory Group, LLC at: (833) 782-7141.

About Communications Systems, Inc.

Communications Systems, Inc. (Nasdaq: JCS), has operated as an IoT intelligent edge products and services visitor. For more data regarding CSI, please meet

Boosted Information and Where to Find It; Participants in the Solicitation

In connectedness with the proposed merger with Pineapple, Communications Systems, Inc. (“CSI”) filed a registration statement on Form S-4 (File No. 333-260999) with the Securities and Exchange Committee (SEC) on November 12, 2021 (every bit amended, the “Registration Statement”). The Registration Argument includes a proxy statement/prospectus, and was alleged effective past the SEC on February 3, 2022. Beginning Feb 4, 2022, a re-create of the proxy argument/prospectus dated February 3, 2022 was sent to CSI shareholders as of the close of business on January 27, 2022, the record appointment established for the special meeting.


The Registration Statement, preliminary and definitive proxy statement/prospectus, whatsoever other relevant documents, and all other documents and reports CSI filed with or furnishes to the SEC are (or, when filed, volition be) available free of charge under the “Financial Reports” tab of the Investors Relations section of our website at or past directing a request to: Communications Systems, Inc., 10900 Cherry-red Circumvolve Bulldoze, Minnetonka, MN 55343. The contents of the CSI website is not deemed to be incorporated by reference into this printing release, the Registration Statement, or the proxy statement/prospectus. The documents and reports that CSI files with or furnishes to the SEC are (or, when filed, will be) bachelor free of accuse through the website maintained by the SEC at

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CSI and its directors and executive officers may be considered participants in the solicitation of proxies by CSI in connectedness with approval of the proposed merger and other proposals to be presented at the special meeting. Information regarding the names of these persons and their respective interests in the transaction, by securities holdings or otherwise, are set forth in the proxy statement/prospectus dated February 3, 2022. To the extent the Company’southward directors and executive officers or their holdings of the Company’due south securities accept changed from the amounts disclosed in such filing, to the Company’s noesis, these changes have been reflected on statements of change in ownership on Form 4 on file with the SEC. You may obtain these documents (when they become available, equally applicative) gratuitous of charge through the sources indicated above.

Forwards Looking Statements

This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Human activity of 1995, including statements regarding futurity financial performance, future growth, and futurity acquisitions. These statements are based on Communications Systems’ current expectations or behavior and are subject to dubiety and changes in circumstances. There tin can exist no guarantee that the proposed transactions described in this press release will be completed, or that they volition be completed every bit currently proposed, or at any particular time. Actual results may vary materially from those expressed or implied past the statements here due to changes in economic, business organization, competitive or regulatory factors, and other risks and uncertainties affecting the operation of Communications Systems’ business organisation.

These risks, uncertainties and contingencies are presented in the Company’due south Annual Report on Form 10-Grand and, from fourth dimension to fourth dimension, in the Company’south other filings with the Securities and Exchange Commission. The information gear up along herein should be read considering such risks. Further, investors should keep in listen that the Company’southward financial results in any period may not be indicative of futurity results. Communications Systems is under no obligation to, and expressly disclaims any obligation to, update or alter its forrad-looking statements, whether because of new information, future events, changes in assumptions or otherwise. In addition to these factors, there are several additional factors, including:

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– the weather condition to the closing of CSI-Pineapple merger transaction may not exist satisfied;

– the occurrence of any other risks to consummation of the CSI-Pineapple merger transaction, including the risk that the CSI-Pineapple merger transaction will not exist consummated inside the expected time menstruation or any event, change or other circumstances that could give rising to the termination of the CSI-Pineapple merger transaction;

– the CSI-Pineapple merger transaction has involved greater than expected costs and delays and may in the hereafter involve unexpected costs, liabilities or delays;

– the Company’due south ability to sell its other legacy operating business assets and its real estate assets at bonny values;

– in that location is no balls that CSI volition receive whatever of the maximum $7.0 meg earnout relating to the August 2, 2021 sale of CSI’south Electronics & Software Segment;

– the combined visitor will be entitled to retain ten percent of the net proceeds of CSI legacy assets that are sold pursuant to agreements entered into after the effective date of the merger;

– risks that the merger will disrupt electric current CSI plans and operations or that the business or stock price of CSI may suffer as a effect of uncertainty surrounding the CSI-Pineapple merger transaction;

– the outcome of whatever legal proceedings related to the CSI-Pineapple merger transaction;

– the fact that CSI cannot yet make up one’s mind the verbal amount and timing of whatsoever additional pre-CSI-Pineapple merger greenbacks dividends, if any, or the ultimate value of the Contingent Value Rights that CSI intends to distribute to its shareholders immediately prior to the closing of the CSI-Pineapple merger transaction; and

– the anticipated benefits of the proposed merger transaction with Pineapple may not be realized in the expected timeframe, or at all.


For Communications Systems, Inc.

Roger H. D. Lacey

Executive Chair and Acting Master Executive Officer

+ane (952) 996-1674