RGS Energy shares dive following reverse stock split
LOUISVILLE – Solar installer RGS Energy (Nasdaq: RGSE) carried out a planned 1-for-20 reverse stock split on Wednesday night, then saw its new boosted share price promptly dive more than 14 percent in Thursday trading.
After opening at $5.90 Thursday morning, Louisville-based RGS’ stock price closed at $5.05.
RGS shares had been trading below 30 cents apiece in days leading up to the split and had been below $1 for months, causing the Nasdaq stock exchange to issue the company a delisting warning.
The reverse split combined each 20 shares into one, leaving the company with about 657,243 shares issued and outstanding immediately following the move, according to a filing made with the U.S. Securities and Exchange Commission. The company said in the filing that it did not decrease its number of authorized shares of capital stock in connection with the reverse split.
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RGS needs to have its share price remain above $1 for at least 10 business days in a row by June 20 to regain compliance with Nasdaq rules regarding minimum share price. The reverse stock split is the second conducted by RGS in just more than a year, having done so last year to regain compliance with the same rule.
If RGS gains compliance with the minimum share price rule, the company still faces potential delisting for being out of compliance with a Nasdaq rule requiring a minimum of $2.5 million in shareholder equity.
