Energy, Utilities & Water  May 18, 2015

RGS Energy conducts 1-for-20 reverse stock split, buys time in face of delisting

LOUISVILLE – Officials for solar installer RGS Energy might have bought themselves some time Monday by carrying out a 1-for-20 reverse stock split. But the troubled company isn’t out of the woods yet as it faces possible delisting by the Nasdaq stock exchange.

Louisville-based RGS, officially Real Goods Solar Inc., conducted the reverse split in an attempt to raise the company’s share price, which closed at 15 cents per share Friday.

The move did just that, as the company’s shares opened at $2.73 apiece Monday. Instead of about 96 million outstanding shares of Class A common stock, the company now has about 4.8 million shares outstanding. The company’s share price slid 7 cents to close at $2.66 Monday.

RGS shares had been trading at less than $1 per share since last fall. Nasdaq prohibits companies from trading below that level for more than 30 consecutive days, and the exchange issued a warning to RGS that it had until June 15 of this year to get back into compliance. Provided RGS shares continue to trade for greater than $1 each for 10 straight days, the company will be deemed in compliance.

But there is still the issue of RGS Energy’s market capitalization. Last month, Nasdaq issued a separate warning to RGS after its market capitalization, the combined value of its outstanding shares, stayed below $35 million for 30 consecutive business days.

RGS has until Oct. 12 to get back into compliance with that rule or face delisting. But the company’s market cap at the close of trading Monday was roughly only $12.8 million. RGS Energy’s share price would need to reach $7.30 to comply with Nasdaq’s market cap rules.

RGS spokesman Ron Both did not respond to a request for comment Monday.

LOUISVILLE – Officials for solar installer RGS Energy might have bought themselves some time Monday by carrying out a 1-for-20 reverse stock split. But the troubled company isn’t out of the woods yet as it faces possible delisting by the Nasdaq stock exchange.

Louisville-based RGS, officially Real Goods Solar Inc., conducted the reverse split in an attempt to raise the company’s share price, which closed at 15 cents per share Friday.

The move did just that, as the company’s shares opened at $2.73 apiece Monday. Instead of about 96 million outstanding shares of Class A common stock, the company now has about…

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