The Carlyle Group Inc. (NASDAQ:CG) has reported the sale of shares in Complete Solaria, Inc. (NASDAQ:CSLR) amounting to a total value of $769,731. The transactions, conducted on October 11 and October 14, involved the sale of 342,905 shares at prices ranging from $2.2339 to $2.2739 per share. Following these sales, Carlyle Group's indirect ownership in Complete Solaria stands at 2,905,461 shares.
The sales were executed by CRSEF Solis Holdings, L.L.C., under a pre-established trading plan. The Carlyle Group, as a ten percent owner, has filed separate Form 4 reports for each entity involved due to electronic filing system limitations.
In other recent news, Complete Solaria Inc. has been making significant strides in its financial and operational strategies. The company has made notable progress in its financial restructuring efforts, including the successful elimination of $67.6 million in long-term debt, providing an additional $18 million in working capital. Despite a revenue drop from $20.7 million to $10.0 million, Complete Solaria maintained a gross margin of 24%, with an expectation to increase over 30% in the upcoming quarter.
Complete Solaria has issued $52.5 million in Convertible Senior Notes due 2029, and secured an additional $32.3 million in convertible notes. The company also amended a stock purchase agreement with White Lion Capital, allowing the investment firm to purchase up to $30 million worth of newly issued common stock.
Among the most significant recent developments is Complete Solaria's pending acquisition of SunPower (OTC:SPWRQ) Corporation's assets, a move set to expand its operational capacity and market reach in the solar industry. As part of its strategic planning, Complete Solaria has appointed Aaron Semliatschenko 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 all recent developments in the company's operations.
InvestingPro Insights
As The Carlyle Group reduces its stake in Complete Solaria, it's worth examining some key financial metrics and insights from InvestingPro to better understand the company's current position.
Complete Solaria's market capitalization stands at $135.18 million, reflecting its relatively small size in the solar energy sector. The company's revenue for the last twelve months as of Q2 2024 was $59.85 million, with a gross profit of $10.32 million. However, the company is currently operating at a loss, with an adjusted operating income of -$44.17 million for the same period.
InvestingPro Tips highlight some challenges facing Complete Solaria. The company is quickly burning through cash and may have trouble making interest payments on its debt. Additionally, its short-term obligations exceed liquid assets, which could pose liquidity risks.
On the other hand, Complete Solaria has shown strong stock performance recently. The company has seen a remarkable 746.15% price total return over the past six months and a 60.58% return over the last year. This aligns with the InvestingPro Tip noting a "high return over the last year" and a "large price uptick over the last six months."
It's important to note that analysts do not anticipate the company will be profitable this year, and it does not pay a dividend to shareholders. These factors, combined with the company's negative earnings per share of -$2.53, suggest that Complete Solaria is still in a growth and stabilization phase.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Complete Solaria, providing a deeper understanding of the company's financial health and market position.
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