U.S. Geothermal to continue its current growth strategy
Following a strategic review, U.S. Geothermal will continue to execute the company's strategic growth plan to grow its geothermal business.
Reported by the company today, U.S. Geothermal Inc. has formally concluded the previously announced evaluation of strategic alternatives.
In 2015, the company started a review process on strategic alternatives to increase stockholder value. With the assistance of its financial advisor, Marathon Capital, a Special Committee of independent directors conducted a review of strategic alternatives. Upon the recommendation of the Special Committee, the Board of Directors has determined that continuing to execute the Company’s strategic growth plan is the best path to maximizing long term stockholder value.
John Walker, Chairman of the Special Committee of the Board of Directors stated “Together with Marathon Capital, we did a detailed and thorough examination of the strategic alternatives. After careful consideration of a number of alternatives, we determined that our best course of action is to focus on the Company’s plans to expand its existing operating projects, advance its development projects, and pursue certain acquisition opportunities. As a result, we have concluded that it is in the best long-term interests of the company’s stockholders to end the review process now.”
Plans are moving forward to expand production from the Raft River resource by drilling additional production capacity that may increase generation by up to 3 MWs, and to increase the output of the Neal Hot Springs Project by 3 MW’s with the addition of a hybrid wet/dry cooling system. The Company also has four advanced development projects totaling 90 MW’s of planned generation. This includes; the WGP Geysers in northern California, San Emidio II near Reno, NV, El Ceibillo in Guatemala, and Crescent Valley, NV. Additionally the Company also owns a portfolio of early stage development projects, and is currently evaluating a number of strategic acquisitions. In recent months, the company acquired 3 new, uninstalled binary power plants, increased its ownership position in the Raft River project to 95%, and received approval for the transmission-interconnection agreement from the California Independent System Operator for its WGP Geysers power project.
Source: Company release via Stockhouse