US-based residential and small commercial PV installer RGS Energy said it expected to have netted around US$3.6 million from its latest US$4.1 million public share offering as it struggles to comply with the NASDAQ minimum stock price rule and possible de-listing.
Ahead of the announced stock offering, RGS Energy had seen its stock price plummet 96% in 2016. The increase share allocation has led to further share price declines and year-to-date the stock is down over 98%.
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“With this offering, we expect to report positive stockholders’ equity and working capital at the end of the year,” said RGS Energy, CEO Dennis Lacey. “Through the end of September, we did not have access to financial capital to execute our business turnaround strategy. However, we have since received capital from our convertible preferred offering and convertible notes financing to execute our strategy. As such, we have been purchasing equipment and converting our backlog to revenue at a faster pace than in the third quarter.”
RGS Energy had previously reported a total of 54 rooftop projects had been completed in the third quarter of 2016, down 50% on the previous quarter’s 98 rooftop completions, which equated to only 0.6MW of third quarter installations, compared to 1.1MW in the previous quarter.
Roth Capital Partners and WestPark Capital acted as the exclusive co-placement agents in the offering.
