Troubled RGS Energy prices stock offering, seeking to raise $3.5M

LOUISVILLE – Real Goods Solar Inc., which does business as RGS Energy, on Friday priced a public offering of common stock and warrants in an attempt to raise about $3.5 million.

Each unit was priced at 50 cents per share and included one share of the company’s Class A common stock and a Series A Warrant to purchase one-half of one share of common stock for 50 cents per share, exercisable for a period of five years beginning six months after the offering closes. Each unit also included Series B, C, D and E warrants.

Shares of RGS (Nasdaq: RGSE) were trading at 49 cents on Tuesday afternoon, down 21 cents from the previous day’s close.

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The Louisville-based solar provider has been troubled over the past year as its share price has plummeted from a closing price of $5.23 on March 10, 2014 to a closing price of 26 cents on Feb. 17. In December, RGS was served notice by Nasdaq that its stock is in danger of being de-listed if its share price doesn’t climb back to at least $1 for 10 consecutive days before June 15.

On Feb. 13, the company announced preliminary fourth-quarter fiscal results that included a projected loss of $16 million. That report also noted an $11 million impairment charge related to RGS’ acquisition of Hawaiian-based Sunetric as well as a $55 million backlog in projects that the cash-strapped company is struggling to fund.

A spokesperson for RGS did not respond to messages seeking comment.

The company is also subject to a pair of lawsuits related to a $7 million private placement equity offering last summer.

RGS shut down its commercial solar segment last fall to focus on the residential side of the business.

The company’s share price had rebounded slightly in recent days after the announcement that RGS was partnering with Centrosolar America, a deal that expands RGS Energy’s capacity for solar installations on the East Coast by 1 to 2 megawatts per month. Shares closed at 70 cents Monday before falling Tuesday morning after the new stock offering was priced.