Real Goods Solar, Inc. (NASDAQ:RGSE) has announced that all of its mandatorily convertible shares, of series A preferred stock, have been completed. The stock carried a stated price of $1,000 per share. The company stated that it had originally issued 2,800 of these shares, which were converted to approximately 1.56 million shares of common stock. The conversion was done at an average price of $1.77 per share.
In addition to this, some of the shareholders, of the company’s series H Warrants had also exercised conversions, at an exercise price of $5.5 per share. Moreover, the warrant holders had acquired over 285,000 shares of RGSE common stock, at a total price of approximately $1.57 million. In light of these conversions, Real Goods Solar updated that it had a total of 3.128 million shares of common stock, issued and outstanding. Both, the series A preferred stock and the series H Warrants, had been issued as part of a unit offering, in September.
Earlier in September, RGSE had announced that it had completed a unit offering of series A mandatorily convertible preferred stock and series H warrants, for total proceeds of $2.8 million. The company had priced each unit at $1,000. Real Goods Solar revealed that they had successfully received net proceeds of $2.2 million, through this offering. Alan Fine, the VP of operations and the principle financial officer of the company, stated that the additional capital was crucial to their business turnaround strategy.
Mr. Fine also revealed that they were anticipating conversions from convertible note holders of RGSE, which had been issued in April 2016. As of October 3, 2016, a total of $1.04 million worth of these notes had been converted. The VP claimed that the conversions would free an estimated $8.25 million in restricted cash, once completed. As such, the company plans to establish a firm financial position, by the end of this year.
Real Goods Solar, Inc. (NASDAQ:RGSE) had a trade volume of 1,860 and lose 8.24% of its share value, to close at $2.56 per share, at the end of the October 7 trading session.