Real Goods investors convert $1.5 million 8% notes, interest into stock

By Devika Patel

Knoxville, Tenn., Nov. 21 – Real Goods Solar, Inc. investors converted about $900,000 of principal and interest due on the company’s 8% convertible senior secured notes due April 1, 2019 into 2,654,166 common shares at conversion prices ranging from $0.345 to $0.3839 per share between Nov. 10 and Friday, according to an 8-K filing with the Securities and Exchange Commission.

The conversion price was reduced to 50% of the lowest volume-weighted average price of the stock during the five days preceding the conversion for the period between Nov. 10 and 4 p.m. ET on Monday.

In addition, the company reduced the conversion price to $0.25 per share during the period that began Sunday and ended at 9:29 a.m. ET on Monday. As a result, holders converted about $600,000 of principal and interest into 2,270,960 shares of class A common stock.

The convertibles were sold with warrants in a $10 million private placement on April 1, 2016, and the company reported on Oct. 21 that it had reduced the fixed conversion price of the $6.7 million of remaining notes to $1.35 on Oct. 17. It further reduced the conversion price to $1.00 on Oct. 28 and to $0.75 on Nov. 1.

As of Monday, holders have converted a total of $9.5 million of notes into 10,891,852 shares at conversion prices ranging from $0.25 to $1.74 per share.

There are about $1.2 million of notes remaining outstanding.

The solar energy company is based in Louisville, Colo.

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