RGS Energy moving HQ from Louisville to Denver

LOUISVILLE — Real Goods Solar Inc. (Nasdaq: RGSE) announced on Thursday it will move its headquarters from Louisville to Denver by the end of January.

The company, doing business as RGS Energy, installs rooftop residential and small commercial solar-powered systems.

The new office is on the third floor at 110 16th St. in downtown Denver. The company said in a prepared statement that the move “significantly reduces rent expense.”

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Seth Wiggins, RGS Energy’s vice president of sales, said the new location, 20 miles from its office in Louisville, is a commutable distance for its employees and a good location to attract top talent for sales and sales support.

RGS Energy has been struggling to avoid being delisted from the Nasdaq stock exchange.

RGS Energy late Wednesday effected a reverse stock split, the company’s third in less than two years, at a ratio of one-for-30. The company has effected two splits prior to this one, including one-for-20 splits on May 18, 2015, and June 2, 2016, all in an attempt to maintain its listing on Nasdaq.

The company began a public offering of common stock and warrants. The effect of the reverse stock split is to combine each 30 shares of outstanding common stock into one new share, with no change in par value per share or the number of authorized shares, and the number of shares outstanding will reduce from approximately 36 million to 1.2 million. Management believes the reverse stock split will allow the company to regain compliance with the Nasdaq requirement for a stock price in excess of $1 per share. Two days ago, its stock was trading at 24 cents per share.

RGS Energy’s stock on Thursday peaked at $5.58 per share, but has been dropping since, trading at $3.78 per share by 10:30 a.m. Mountain Time.

The company on Thursday also released preliminary fourth-quarter financials for the fourth quarter that ended Dec. 31.

The company reported a net loss of $10.5 million on revenue of $5.1 million. Revenue was up from $2.5 million for the quarter that ended in September, but down from $9.7 million recorded in the last quarter of 2015.

“Our preliminary fourth-quarter results reflect strong sequential improvement in revenue, gross margin percentage and operating loss — all of which were driven by the increased access to capital during the quarter,” Dennis Lacey, RGS Energy’s chief executive, said in a prepared statement. “As planned, our financial position has markedly improved following our capital raises in 2016. Our indebtedness has been materially reduced, and we have addressed previously outstanding aged vendors’ accounts payable.”

The company plans to file its annual report in March.