Ram Power to decide on sale of Geysers project in early 2014
Ram Power has received several offers for its Geysers geothermal power project in California, plans a rights issue and is still exploring strategic alternatives for its operations and activities.
Following a strategic review of its corporate options, Ram Power Corp has now provided details on some elements that the company looked at, as reported earlier.
One of the options the company has been looking at is the sale of some of its assets, including the Geysers project in California, U.S. It hopes to monetize the project (formerly a Western GeoPower project) and announces now, that “it has received several bids from interested parties looking to acquire the asset. The Company will be evaluating those bids in the next few weeks with an expectation to enter into a purchase and sale agreement early in 2014. Any monies received will be used for further development of our pipeline projects and general corporate purposes.
On the funding side, Ram Power is now in the process of conducting a Rights Offering, which entitles each holder of each Common Share as of the November 26, 2013 record dates to receive one transferable right (a “Right”) for each Common Share held. Every 4.5 Rights will entitle a holder to purchase one Common Share at a price of $0.08. A maximum of 67,084,960 Common Shares will be issued pursuant to the Rights Offering which is being backstopped by Dundee Securities Ltd., Newberry Holdings International Ltd. (“Newberry”) and Exploration Capital Partners 2000 Limited Partnership (“Explo Cap”). Pursuant to the standby agreements with such parties, Dundee Securities, Newberry and Explo Cap have agreed to purchase from Ram Power, subject to certain conditions, such number of Common Shares that are available to be purchased, but not otherwise subscribed for under the Rights Offering, which will result in 100% of the Common Shares being issued under the Rights Offering. The expiry of the rights occurs at 5:00 p.m. EST on December 23, 2013 and will raise gross proceeds of approximately Cdn.$5.3 million.
The company is also still exploring strategic alternatives. It formed a Mergers and Acquisitions Committee to explore and evaluate a broad range of strategic alternatives for the Company to enhance shareholder value. Dundee Securities Ltd. has been appointed as financial advisor on the strategic alternatives review process, and will examine a range of strategic alternatives which may include the acquisition or disposition of assets, joint ventures, the sale of the Company, alternative operating models including maximizing operational efficiencies, or continuing with the current business plan, among other potential alternatives.
“The Company continues to do all that is necessary to conclude a successful remediation program in order to maximize shareholder value,” stated Antony Mitchell, Executive Chairman for Ram Power Corp. “We are looking forward to 2014, and are confident it will demonstrate increased production at San Jacinto, the sale of our Geysers Project and a rationalization of a strategic alternative for the Company.”
Source: Company release via Yahoo