Written by The White Law Group• May 17, 2024• 2:01 am• Investment Loss Recovery

Greenbacker Renewable Energy Co. Liquidation

Greenbacker Renewable Energy Suspends Redemptions featured by top securities fraud attorneys, the White Law Group

Greenbacker Renewable Energy Co. Secondary Sales Price $2.12 per Share

The White Law Group continues to investigate potential securities claims involving broker dealers who may have unsuitably recommended Greenbacker Renewable Energy Company to investors.

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According to Central Trade and Transfer this week, shares of Greenbacker are currently listed for sale for just $2.12 per share. This may indicate big losses for investors as the original offering price was reportedly $10 per share.

Greenbacker Suspends Distributions

According to reports this week, Greenbacker Renewable Energy Company announced a suspension of its monthly distribution for the remainder of 2024 to allocate more capital toward completing various projects, including the largest solar project in New York.

The suspension of distributions could be perceived as bad news for investors in the short term, especially those reliant on regular income. This decision reportedly reflects the company’s need to prioritize capital allocation towards completing projects and enhancing revenue-generating capacity.

This move aims to double the company’s revenue-generating capacity by 2027. Additionally, Greenbacker plans to sell non-core assets to generate capital for reinvestment or returning to shareholders. The company forecasts total operating revenue to exceed $350 million by 2027, up from $181 million in 2023. The company has reportedly secured $437 million in financing for wind energy projects in Iowa and Minnesota.

Net Asset Value Declines

Greenbacker Renewable Energy Co., an non traded private placement investment, has reported a drop in value for its share price. The current Net Asset Value has declined from $8.26 per share to $7.79 per share, according to filings with the SEC. Shares of Greenbacker were purportedly originally sold for $10 per share. According to Lodas Markets, a secondary market for non-traded investments, shares of Greenbacker were recently sold for just $5.85 per share.

Greenbacker Renewable Energy Co.: Redemptions Limited to Stockholder Death, Disability

Greenbacker’s board of directors, on September 27, 2023, sent a letter to shareholders stating it would be suspending redemptions indefinitely to “devote more of our operational cash flow and financing dollars into converting pre-operational projects into operational projects.”

The company noted that “All share repurchase requests received for the third quarter of 2023 and beyond—aside from with respect to death, qualifying disability, or a determination of incompetence—will not be honored, paid, or deemed valid.”

According to its website, Greenbacker Renewable Energy Company (GREC) is a publicly reporting, non-traded limited liability company that acquires and manages income-generating renewable energy and other energy-related businesses. The company filed an amended Form D to raise capital from investors in 2021. The total offering amount that has purportedly been sold to investors is $988,072,745.

The Trouble with Reg D Private Placements

The White Law Group is investigating potential claims involving brokerage firms who may have improperly recommended high-risk private placements to investors.

Investments such as these are typically sold by brokerage firms in exchange for a large up-front commission. High fees can range from 7-10%, as well as additional “due diligence fees” that can range from 1-3%.

The problem with private placement investments is that they typically involve a high degree of risk. They are also often sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

Broker dealers are required to perform adequate due diligence on any investment they recommend. They must ensure that all recommendations are suitable for the investor. Firms that fail to do so, may be held responsible for any losses in a FINRA arbitration claim.

Class Action vs. Individual FINRA Arbitration Lawsuit

People often wonder whether a large class action lawsuit is a better litigation option for them than an individual FINRA arbitration case. The answer depends on a number of factors but typically if the loss sustained is large (say larger than $100,000) an individual arbitration claim is likely a better option. Class actions as a recovery option are more appropriate for grouping large numbers of individuals who have small claims – too small to generally pursue individually.

Recovery of Greenbacker Investment Losses

If you have concerns regarding your investment in Greenbacker Renewable Energy Company you may have recovery options. Please call the securities attorneys at The White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states in claims against their brokerage firms. Our attorneys have recovered millions of dollars from many brokerage firms in the past. The firm works on a contingency fee basis to help you in your time of need.