RGS Energy gets extension for regaining compliance with Nasdaq rules

LOUISVILLE — RGS Energy has dug itself out of one hole with the Nasdaq stock exchange, and now has until Oct. 11 to get out of another.

The Louisville-based solar installer disclosed this week that it has been granted an extension until that date by Nasdaq to regain compliance with a rule that requires a minimum of $2.5 million in stockholders equity for its stock to be listed on the Nasdaq Capital Market.

In addition, RGS Energy disclosed in its recent regulatory filing that it has officially regained compliance with the Nasdaq rule requiring a minimum per-share price of $1. RGS in June carried out its second 1-for-20 reverse stock split in little more than a year to boost the price of its shares, which on Thursday closed down 5.2 percent at $3.49 apiece.

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RGS had until May 31 to submit a plan to Nasdaq for regaining compliance with the minimum stockholders equity rule. RGS’ stockholders equity stood at a deficit of about $1 million at the end of 2015 and a deficit of $4.4 million at the end of the fiscal quarter ending March 31. The company said in Tuesday’s filing that it submitted its plan on May 31, and was notified on Thursday by Nasdaq that the Oct. 11 extension had been granted.

RGS did not disclose in the filing its strategy for regaining compliance, with officials saying that they’re still evaluating options.

If RGS fails to regain compliance by Oct. 11, the company could be delisted by Nasdaq from the exchange.