Real Goods Solar, Inc. (NASDAQ:RGSE)
Real Goods Solar, Inc. (NASDAQ:RGSE) is a small commercial and residential solar firm established in 1978. The company released a business update after its recently closed offerings that recorded total net proceeds of $16 million. The firm provided an updated pro forma unaudited report with the additional capital and debt reimbursements as if concluded on December 31, 2016.
Dennis Lacey, the CEO of Real Goods Solar, Inc. (NASDAQ:RGSE), reported that since their previous business update, they successfully took advantage of their capital market prospects and raised more capital. As intended, they are now Nasdaq compliant. They also have a stronger balance sheet and is now debt-free. The focus now turns to implementing their growth strategy. For this objective, they have recently expanded their sales organization.
The unaudited preliminary report is subject to the company’s quarterly closing and review processes, as well as the regular annual audit. These results are hence subject to modification. Real Goods Solar intends to submit its 2016 yearly report this week.
The pro forma report presents the firm’s balance sheet. The $16 million in net proceeds and the debt repayments closed in January. As previously stated on Form 8-Ks, the firm obtained notification from Nasdaq exchange that it is in compliance with the minimum trading price required of $1/share and the minimum stockholders’ stock requirement of $2.5 million.
As previously reported, Real Goods Solar, Inc. (NASDAQ:RGSE) repaid their revolving line of credit facility last month. With working capital and cash now in hand, there exists no motive to continue the revolving line of credit facility. The company terminated the linked supply deal with the financier which will permit them to buy materials at reduced price and increase their gross margin percentage.
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.