The Carlyle Group Inc. (NASDAQ:CG) recently disclosed a significant stock sale in Complete Solaria, Inc. (NASDAQ:CSLR), according to a Form 4 filing with the Securities and Exchange Commission. The investment firm sold 250,000 shares of Complete Solaria's common stock for a total value of $582,250. The shares were sold at a weighted average price of $2.329, with transactions occurring within a price range of $2.27 to $2.41.
Following this transaction, Carlyle Group's indirect ownership in Complete Solaria stands at 2,155,461 shares. The sale was executed under a Rule 10b5-1 trading plan adopted by CRSEF Solis Holdings, L.L.C., a managing entity within the Carlyle Group's complex ownership structure. This plan was put in place on September 6, 2024, as part of the firm's strategic financial maneuvers.
In other recent news, semiconductor company Complete Solaria has made several significant strides. The company appointed Daniel Foley as its new CFO, with a competitive compensation package including a base salary of $400,000 and eligibility for a yearly bonus of 50% of his gross salary. The company has also issued Convertible Senior Notes due 2029, securing $32.3 million and $52.5 million, expected to support various corporate purposes, including the acquisition of SunPower (OTC:SPWRQ) Corporation's assets.
Complete Solaria is also set to acquire SunPower's assets, a move expected to expand its operational capacity and market reach in the solar industry, pending final approval by the Bankruptcy Court. The company successfully eliminated $67.6 million in long-term debt, providing an additional $18 million in working capital. Despite a decrease in revenue from $20.7 million to $10.0 million, Complete Solaria maintained a gross margin of 24% and is expected to increase over 30% in the upcoming quarter.
Other recent developments include a change in leadership, with Aaron Semliatschenko appointed as the new Vice President of U.S. Operations. To address identified material weaknesses in its internal control over financial reporting, Complete Solaria has replaced Deloitte & Touche LLP with BDO USA, P.C. as its new auditor. These are among the recent developments shaping the company's trajectory.
InvestingPro Insights
The recent stock sale by The Carlyle Group in Complete Solaria, Inc. (NASDAQ:CSLR) comes at a time when the solar company is facing significant financial challenges. According to InvestingPro data, Complete Solaria's market capitalization stands at $150.13 million, reflecting its current position in the market.
InvestingPro Tips highlight that Complete Solaria is "quickly burning through cash" and "may have trouble making interest payments on debt." These factors could have influenced Carlyle's decision to reduce its stake. Additionally, the company's stock "generally trades with high price volatility," which aligns with the observed price range of $2.27 to $2.41 during the reported sale.
Despite these challenges, Complete Solaria has shown a strong return over the last three months, with a price total return of 61.38% for that period. This recent performance contrasts with the company's longer-term financial health, as InvestingPro data indicates that Complete Solaria is not profitable over the last twelve months, with a negative operating income of $44.17 million.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Complete Solaria, providing deeper insights into the company's financial situation and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.