RGS Energy raises USD 2.9m as Powerhouse business starts slowly

US solar installer RGS Energy (OTCMKTS:RGSE) has finalised its previously unveiled offering of common stock and warrants, raising about USD 2.9 million (EUR 2.6m) net.

CEO Dennis Lacey explained that the company went through a weaker than expected start to 2019 because the commercial launch of its Powerhouse in-roof solar shingles coincided with the historically slow season for solar system sales in the first quarter. Because of that, RGS Energy had to resort to raising additional capital, Lacey said.

RGS Energy sold a total of 15.94 million Primary Units consisting of one Class A common share and a Series R Warrant, as well as about 1.43 million Alternative Units comprising a Series R Warrant and a prepaid Series S Warrant to purchase one share of common stock. The investors paid USD 0.19 for each Primary Unit and USD 0.18 for each Alternative Unit.

Last week, RGS Energy announced it plans to exit its unprofitable mainland residential solar business to focus on the market for its Powerhouse in-roof solar shingles. The planned move will cut the company’s overall cash outflow in a drive to maximise future shareholder value, it said.

(USD 1.0 = EUR 0.889)

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