RGS Energy again facing delisting by Nasdaq stock exchange

LOUISVILLE — Troubled Louisville-based solar installer RGS Energy (Nasdaq: RGSE) is once again in danger of being delisted by the Nasdaq stock exchange.

Just more than four months after announcing that the company had come back into compliance with Nasdaq’s marketplace rules, the company disclosed in a regulatory filing on Dec. 24 that it has been notified by the exchange of the possible delisting.

RGS is in violation of the Nasdaq rule that prohibits companies’ share price from closing below $1 for more than 30 days in a row. RGS’ share price last closed above $1 on Nov. 9. But a third-quarter earnings report that included a net loss of $4.3 million and revenue of $10.4 million was followed by the company’s stock losing nearly half its value the next day.

RGS has 180 days, or until June 20, to regain compliance. If the company’s stock price closes at $1 or more for at least 10 business days in a row between now and then, the company will regain compliance.

RGS last year ran afoul of two different Nasdaq rules that meant possible delisting, including the minimum share price rule.

The company regained compliance with the minimum share price rule last May by conducting a 1-for-20 reverse stock split. That move led to the company’s shares — which had closed at 15 cents apiece the previous day — to open at $2.73 each after the split. But the share price has fallen steadily since, though RGS shares were up 8 percent to 68 cents apiece late Monday afternoon, climbing from Thursday’s close of 63 cents.

RGS last year had also fallen out of compliance with a Nasdaq rule that requires minimum market capitalization, or the value of all outstanding shares, to remain above $35 million. RGS’ market cap has not climbed back above $35 million, but company officials announced in August that they’d regained compliance through an alternative avenue by boosting stockholder equity to $2.5 million or more. As of Sept. 30, the company’s stockholder equity — its total assets minus total liabilities — stood at nearly $3 million. RGS’ market cap is roughly $8.4 million using the 68 cents per share price.