News

Polaris Infrastructure closes recapitalisation transaction

Plant in San Jacinto Tizate, Nicaragua (source: PowerEngineers)
Alexander Richter 15 May 2015

Polaris Infrastructure reports closure of recapitalisation transaction with injection of equity capital, combined with a significant restructuring of its balance sheet, enabling the Company to focus on optimizing the cash flow generation of the San Jacinto project over the long term.

Following the recent change of name to Polaris Infrastructure Inc by Ram Power, in a recent press release, the Company announced today that, in accordance with the terms of the private placement agreement dated April 20, 2015 between the Company and Goodwood Inc., it has completed the equity financing and rec-apitalization transaction that was previously announced on April 20, 2015.

“The injection of equity capital, combined with a significant restructuring of its balance sheet, will enable the Company to focus on optimizing the cash flow generation of the San Jacinto project over the long term,” said Marc Murnaghan, the Company’s newly-appointed Chief Executive Officer.

The first step of the Transaction was completed when the Company closed a private placement offering on April 30, 2015 of 18,598,500,000 subscription receipts at a price per Subscription Receipt of Cdn$0.004  for gross proceeds of approximately Cdn$74 million. Each Subscription Receipt entitled the holder to receive, without payment of additional consideration, one pre-Share Consolidation (as defined below) common share in the capital of the Company, upon the satisfaction of certain release conditions. The Company is pleased to announce that, as of today, the escrow release conditions have been fully satisfied, the Subscription Receipts have been converted into common shares and the proceeds of the private placement have been released to the Company.

For the full release see link below.

Source: Press Release by Polaris Infraestructure