RGS Energy hit with new delisting warning from Nasdaq
LOUISVILLE — Real Goods Solar Inc., which does business as RGS Energy, has once again run afoul of Nasdaq stock-exchange rules.
The Louisville-based solar installer disclosed in a regulatory filing on Friday that Nasdaq had notified the company on Thursday that it faces delisting due to a drop in stockholder equity to less than $2.5 million.
The notice was the second in roughly three months for RGS, which was notified by Nasdaq in January that it faces delisting due to its share price being too low. That came just months after the company had regained compliance last year after a pair of similar violations.
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An RGS official could not be reached for comment Monday.
RGS (Nasdaq: RGSE) reported stockholder equity — its total assets minus total liabilities — of just more than $1 million in its 2015 year-end financial statements.
The company has until May 31 to submit a plan to regain compliance. If Nasdaq accepts such a plan, it could grant RGS a grace period through Oct. 11 to regain compliance. RGS officials, in Friday’s filing, indicated that they intend to submit a compliance plan.
In January, Nasdaq notified RGS of possible delisting because RGS’ share price had closed at less than $1 for more than 30 days in a row. The company has until June 20 to regain compliance with that requirement. To do so, its share price must close at $1 or more for 10 business days in a row.
RGS regained compliance with the minimum share price rule in May of last year by conducting a 1-for-20 reverse stock split that brought the company’s share price to $2.73. But the company has continued to struggle since. Its share price closed at 55 cents on Monday, and hasn’t closed above $1 since Nov. 9.
RGS had also faced delisting last year for falling out of compliance with a Nasdaq rule that requires minimum market capitalization, or the value of all outstanding shares, to remain greater than $35 million. The company failed to meet that threshold but in August regained compliance through an alternative avenue by boosting stockholder equity to $2.5 million or more — the threshold RGS now must reach again.
RGS turned in a $10.8 million net loss for 2015.
