Sierra Geothermal closing final tranche of Can$ 7 million offering
Sierra Geothermal Power Corp. announced the completion of the second of two closings in its previously announced private placement offering of up to 31,818,182 units for total proceeds of C$7 million.
In a release yesterday, Sierra Geothermal Power Corp. (TSX VENTURE:SRA) announces “that on October 20 and 21, 2009, it completed the second of two closings in its previously announced private placement offering of up to 31,818,182 units. In this final closing, Sierra Geothermal sold 2,736,504 units at a price of $0.22 per unit for gross proceeds of $602,030. As previously announced, each unit consists of one common share and one non-transferable common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at a price of $0.30 until October 20, 2011. Total units sold in this private placement offering were 31,852,274 for gross proceeds of $7,007,500. After adjustment for the common shares issued in this private placement, Sierra Geothermal now has 128,232,124 common shares issued and outstanding.
Jacob Securities Inc., assisted by a selling group, acted as agent in both the first and second tranches of this private placement. For its services in the second closing, Jacob Securities Inc. and the selling group received an aggregate cash commission of $33,077 and Jacob Securities Inc. received 143,350 non-transferable agent’s warrants. Each agent’s warrant entitles the holder to purchase one Sierra Geothermal Power common share at a price of $0.22 per share until October 20, 2011. Over the course of the offering, the selling group included Wellington West Capital Markets Inc., Canaccord Capital Corporation, Haywood Securities Inc., Auburn Capital Corp., Penson Financial Services Canada, Bolder Investment Partners Ltd., PI Financial Corp. and Jones, Gable & Company Limited. Collectively, the agent and the selling group received an aggregate cash commission of $415,732 and an aggregate of 1,799,798 non-transferable agents’ warrants.
All of the securities issued in this final tranche of the brokered private placement are subject to a four-month hold period and may not be traded until February 20, 2010.
Sierra Geothermal Power proposes to use the net proceeds of this financing to advance its tier one geothermal properties located in Nevada and for general corporate and administrative expenses.”
Source: Company release via Benzinga