RGS Energy regains Nasdaq compliance, avoids delisting

LOUISVILLE — Rooftop solar-equipment installer RGS Energy Inc. on Monday said it received notification from the Nasdaq Stock Market LLC that it has regained compliance with the stock exchange’s marketplace rules.

In April, Nasdaq notified RGS (Nasdaq: RGSE) that its market capitalization fell below the $35 million requirement and had 180 days to comply or, through an alternative rule, boost its stockholder equity to $2.5 million or more to regain compliance and avoid delisting.

On Aug. 17, Nasdaq notified RGS Energy that based on its earnings report filed for the quarter that ended June 30 that showed stockholder equity of $7.3 million, the company now complies with the alternate rule and that as a result RGS is now compliant with Nasdaq rules.

Market capitalization is calculated by multiplying the number of outstanding shares by the current market price of a share. RGS Energy’s shares were trading at $1.34 per share midday, equating to a market capitalization of $16.2 million.

“This compliance with Nasdaq standards is the outcome of recent financial transactions that have returned the company to positive stockholders’ equity and positive working capital,” Dennis Lacey, RGS’ chief executive, said in a prepared statement. “We have now refocused our turnaround efforts on revenue growth by expanding our sales and construction capabilities.”