Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.4.0.3
Subsequent Events
3 Months Ended
Mar. 31, 2016
Subsequent Events

11. Subsequent Events:

On May 6, 2016, the Company purchased all the equity interest of TNT Energy, LLC, a Massachusetts limited liability company (“TNT”) for $13.9 million consisting of $8 million in cash, the issuance of $2 million in promissory notes and contingent consideration, preliminarily valued at $3.9 million. The cash payment was funded through the common stock offering discussed below.

TNT is a turnkey provider of LED lighting-based energy savings projects within the commercial, industrial, hospitality, retail, education and municipal sectors. TNT’s headquarters are located in Raynham, Massachusetts with additional offices located in Westfield, Massachusetts. The acquisition of TNT Energy is expected to expand the Company’s footprint within key lighting retrofit markets in the northeast. The Company believes this is a direct complimentary fit with the Company’s division, Energy Source, based in Providence, RI. In addition to its broad existing customer base, TNT Energy is a contract vendor for the Small C&I Business Programs of northeast utility companies, with a defined territory of approximately 120 municipalities throughout Massachusetts.

Due to the timing of the acquisition the initial accounting for the acquisition is incomplete. Accordingly, pro forma revenue and net loss has not been provided. The Company expects to provide such information once the analysis is complete.

On May 6, 2016, the Company completed an underwritten public offering of 3,191,250 shares of its common stock at an offering price of $5.25 per share. Net proceeds of the offering approximated $15.4 million, which was used to fund the cash portion of the TNT acquisition, to pay down bank debt and for general corporate purposes. As a result of the offering, RVL owns 43% of the common stock.