Real Goods Solar’s low market cap draws another delisting warning from Nasdaq

LOUISVILLE – Real Goods Solar Inc.’s (Nasdaq: RGSE) market capitalization has fallen to $15.6 million, triggering a letter from Nasdaq informing the company that it has fallen out of compliance with market rules.

The market value of Louisville-based RGS’ common stock fell below $35 million for the 30 business day period between Feb. 24 and April 13, in violation of Nasdaq rules. Rooftop solar installer RGS has 180 days, or until Oct. 12, 2015, to comply with Nasdaq rules, according to an RGS filing with the Securities and Exchange Commission.

If RGS’ market cap closes at $35 million or more for a minimum of 10 consecutive business days, NASDAQ staff will notify the company that it has regained compliance.

Nasdaq will notify the company that its securities are subject to delisting if RGS does not comply with the rule before Oct. 12.

RGS said in the SEC filing that the company intends to monitor the situation, and will consider available options to comply with the minimum market cap requirement.

RGS spokesman Ron Both did not respond to BizWest’s requests for further comment.

Nasdaq previously also has warned that RGS faces delisting because its stock traded below $1 for more than 30 consecutive days.

RGS, whose stock closed at 19 cents Friday, has until June 15 to comply with that rule.

RGS will hold a shareholder meeting May 12 to vote on a reverse stock split of its outstanding shares, according to a separate SEC filing. The company, which does business as RGS Energy, has proposed to classify its class A common stock within a specific ratio between 1-for-2 and 1-for-20.

A reverse stock split involves a company consolidating its outstanding shares.

Stock in RGS, which announced a reorganization last month in which it planned to cut 100 jobs, has slipped from a 52-week-high of $3.44. The company’s acquisition of Sunetric in Hawaii has floundered as regulatory changes in that state have made rooftop solar a less attractive option there.

RGS’ also faces three shareholder lawsuits based on statements the company made about its liabilities, cash balance and other items.

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