Dallas, Texas 07/07/2015 (Financialstrend) – Real Goods Solar, Inc. – Class A (NASDAQ:RGSE) the nation’s leader in the installation of solar rooftops, stated that, it has secured $5 million on the public offer of common stock and warrants. The offer included Class A common stock and Series F common stock warrants at a price of $3.65 per unit.
According to the Form 8-k documented by the company with SEC. Each unit included one share of Class A common stock and a warrant to buy 0.3 shares of Class A common stock. Derivative warrant liabilities are not mentioned in the warrant as it reduces the stockholders’ equity. From the total $5 million amount raised, only $4.4 million offerings will be used by the company after excluding the agents’ fees and expenses incurred during the offer.
Dennis Lacey, CEO, stated that the funds raised will help to improve the financial state of the company. It would also allow them to provide positive stockholder’s equity and working capital for the second quarter fiscal year 2015. He also said that good financial position shows the company’s creditworthiness towards its customers, credit rating agencies, and vendors. Moreover it helps to improve purchasing power in the future.
Real Goods Solar, Inc. – Class A (NASDAQ:RGSE) has entered into agreement to exchange series A and series C warrants for the total of 1,328,004 Class A common stock shares. Removing the derivatives warrant liabilities saves the company from the material volatility caused due to the changes in the values of these derivatives. The exchange of Series A and C including the conversion of debt to equity was all done to increase the stockholder’s equity, to maintain positive working capital and to meet the listing standards required by NASDAQ.
Real Goods Solar, Inc. – Class A (NASDAQ:RGSE) has been in a strong downtrend and the stock has fallen by more than 45 percent in last one week itself. Its YTD return stands at -82.50 percent.