Real Goods Solar, Inc. (NASDAQ:RGSE) a small commercial and residential solar firm since 1978, has closed the previously reported $4.1 million offering of units comprising of its Class ‘A’ common stock, which was released as percentage of the units or primary a prepaid Series ‘J’ warrant, and Series I stock warrants priced at $0.22 per unit.
Each unit comprises of 1 share of Class ‘A’ stock and also a Series I warrant to buy ‘1’ share of Class ‘A’ stock, as stated in the report filed on Form 8-K by Real Goods on December 13, 2016. Nevertheless, the firm’s December 8, 2016, news release, the firm did not release any Series ‘J’ warrants pertaining to the completion of the offering. The Series ‘I’ warrants can be exercised immediately after they are issued at a price of $0.35 a share and for a period of 5 years thereafter.
After placement agent costs and other projected offering costs, the net offering funds amounted to RGS Energy total nearly $3.6 million. Dennis Lacey, the CEO of Real Goods Solar, said that with this public offering, they project to post positive working capital and stockholders’ equity at the close of the year.
Through the close of September, they did not have rights to use financial capital for implementing their business turnaround plan. However, they have since obtained funds from their convertible preferred offering and notes funding to execute their strategy. As such, they have been buying equipment and converting their backlog to revenue at an increased pace compared to the third quarter.
WestPark Capital, Inc. and Roth Capital Partners acted as the co-placement agents in the public offering. RGS Energy is a small commercial and residential solar firm, which has installed over 25,000 solar power systems. It makes it extremely convenient for clients to save on energy bill by offering turnkey solar solutions, from system design, customer financing assistance, installation, construction planning, to warranty and interconnection.