BOULDER, Colo.--(BUSINESS WIRE)--Gaiam, Inc. (NASDAQ: GAIA) (“the Company”), a lifestyle media company, announced today that it sold approximately six million shares of Real Goods Solar, Inc. for net proceeds of $16.4 million. Following these transactions, Gaiam continues to own approximately 4.1 million shares of Real Goods Solar’s common stock.
On May 24, 2013, Real Goods Solar announced that it had entered into a definitive agreement to raise over $9 million in a private placement of approximately 3.3 million of its shares. The transaction funded on June 3, 2013. In connection with the funding, Gaiam agreed to a 90-day lock-up of the shares of Real Goods Solar’s common stock that it continues to own.
Lynn Powers, Chief Executive Officer of Gaiam, commented, “With its new senior management team and additional financing in place, it is time for Gaiam to reduce its investment of financial and management resources in Real Goods Solar and re-deploy those assets for the benefit of Gaiam’s core businesses.” To underscore this direction, following Gaiam’s sale of Real Goods Solar shares, Gaiam’s Chairman, Jirka Rysavy, resigned from his position as Real Good Solar’s Chairman that he had held since its inception.
Lynn Powers added, “In 1999, Gaiam founded its solar division Gaiam Energy Tech, which during the 2008 IPO process adopted the name Real Goods Solar. Monetizing a portion of this Gaiam spin-off allows the Company to strengthen its financial foundation and continue growing its core businesses. For 2012, Gaiam’s total revenues rose 22%, and we are off to a strong start in 2013 with first quarter revenues up nearly 20% over the comparable prior-year period. We are encouraged by the momentum we are generating in both our business and direct to consumer segments and believe the added financial flexibility to invest in and support core business growth will benefit Gaiam and our shareholders.”
The sale of the Real Goods Solar common stock will result in a significant gain to Gaiam since, as Real Goods Solar’s founder, its basis in the shares is low. Gaiam will utilize a portion of its net operating loss carry forwards to fully offset the income tax gain.
Gaiam, Inc. (NASDAQ: GAIA) is a leading producer and marketer of lifestyle media and fitness accessories. With a wide distribution network that consists of over 60,000 retail doors, 15,000 store within stores, and 6,000 media category management locations, and a digital distribution platform, Gaiam is dedicated to providing solutions for healthy and eco-conscious living. The Company dominates the health and wellness category and releases non-theatrical programming focused on family entertainment and conscious media. In addition, Gaiam has exclusive licensing agreements with Discovery Communications and other licensing partners. For more information about Gaiam, please visit www.gaiam.com or call 1.800.869.3603.
About Real Goods Solar
Real Goods Solar, Inc. (RSOL) is one of the nation's pioneering solar energy companies serving commercial, residential, and utility customers. The company has installed more than 14,500 solar power systems representing over 100 megawatts of 100% clean renewable energy. Real Goods Solar makes it very convenient for customers to save on their energy bill by providing a comprehensive solar solution, from design, financing, permitting and installation to ongoing monitoring, maintenance and support. As one of the nation's largest and most experienced solar power players, the company has 15 offices across the West and the Northeast. It services the commercial and utility markets through its RGS Energy division. For more information, visit RealGoodsSolar.com or RGSEnergy.com, on Facebook at http://facebook.com/realgoodssolar and on Twitter at http://twitter.com/realgoodssolar.
This press release includes forward-looking statements relating to matters that are not historical facts. Forward-looking statements may be identified by the use of words such as “expect,” “intend,” “believe,” “will,” “should” or comparable terminology or by discussions of strategy. While Gaiam believes its assumptions and expectations underlying forward-looking statements are reasonable, there can be no assurance that actual results will not be materially different. Risks and uncertainties that could cause materially different results include, among others, introduction of new products and services, completion and integration of acquisitions, the possibility of negative economic conditions, and other risks and uncertainties included in Gaiam’s filings with the Securities and Exchange Commission. Gaiam assumes no duty to update any forward-looking statements.