Solar shingle maker RGS Energy mulling strategic alternatives

RGS Energy (NASDAQ:RGSE), a US solar installer and the maker of the Powerhouse solar shingles, is considering a sell-off, a merger or a strategic investment financing as possible options to enhance shareholder value.

Colorado-based RGS Energy is the exclusive worldwide manufacturer of the solar shingles that use technology developed by The Dow Chemical Company. It is in the process of commercialising the technology and has successfully passed the UL certification and secured the first reservations for the solar shingle systems. In a press release on Thursday, the company explained that options are being considered as “strategic alternatives” that will allow it to adhere to its current business plan and maximise shareholder value.

“Over the past year, we made significant strides reinventing RGS Energy around the Powerhouse solar shingle that we believe will enable us to enjoy future growth and profitability,” said CEO Dennis Lacey. As the process is time-consuming, however, and could take years, the company has decided to pursue “complementary paths” for enhancing shareholder value, he added.

RGS Energy noted it has not set a timeframe for the “strategic alternatives” review process and said there can be no assurance that it will result in a transaction or other strategic change or outcome.

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