Exclusive Interview with Rick Davis, Current CEO, Lighting Science Group
**EXCLUSIVE: MUST CREDIT EDISONREPORT.NET.
The editor of our sister publication – EdisonReport.net, spoke to Rick Davis, current CEO of Lighting Science Group. Rick is from Pegasus Capital Advisors, who owns the majority of LSG stock.
Here is what we learned:
- Pegasus Capital will have a more active role in day-to-day operations of LSG.
- Manufacturing costs have been the real culprit and those issues are now complete. Production has transitioned from Mexico to China. Manufacturing hit all of their metrics before the Chinese New Year.
- With production issues solved the intent is to focus on expanding the product base and providing sales to the key channels of retail, commercial and infrastructure.
- Vincent Colistra, who resigned as CEO, will stay on as an advisor to assist with restructuring the finances as the company looks to refinance a portion of its debt.
- LSG is fixed on growth and is raising capital to expand operations. Over its history, LSG has raised over $200M (independently, we have been told the number could be two to three times more than $200M). Recently $40M has been raised primarily from Pegasus and Riverwood Capital Partners in their current $70M offering.
- Plan calls for 1.8M units at Home Depot. Every sku sold to Home Depot will now have a positive gross margin. LSG will compete with Cree on price with regard to the $9.99 and $12.99 price points. The Home Depot planogram has increased two and a half times over the current shelf space.
- LSG is focused on technology and the Light and Health market is very important. Key products are the Sleep Light and Wake Light. Other key technology products are the Coastal Light (turtle) and the Grow Light.
- The role of founder and CTO, Fred Maxik has not changed. Fred has a headcount of 14. While Fred has his own P&L, his division is wholly owned by LSG.
Other sources have told us:
- Rick’s position as CEO is temporary and Pegasus has retained a search firm to find a permanent CEO.