Sierra Geothermal Power closes first tranche of $7 million placement
Sierra Geothermal Power announces the closing of the first tranche of $7 million placement.
Released by the company, Sierra Geothermal Power Corp. (TSX VENTURE:SRA) announced “that on October 9, 2009, it completed the first of two closings in its previously announced private placement offering of up to 31,818,182 units. In this first closing Sierra Geothermal sold 29,115,770 units at a price of $0.22 per unit for gross proceeds of $6,405,469. As announced previously, 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 9, 2011. The balance of the financing is anticipated to close by October 16th, 2009.
Jacob Securities Inc. acted as agent in the private placement. The agent received a cash commission of $382,654.89 and Sierra Geothermal issued 1,656,448 non-transferable agents’ warrants. Each agents’ warrant entitles the holder to purchase one Sierra Geothermal Power Corp. common share at a price of $0.22 per share until October 9, 2011.
All of the securities issued in this brokered private placement are subject to a four-month hold period and may not be traded until February 9, 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.
In addition to the above, Sierra Geothermal Power Corp. has entered into a six-month advisory agreement with Jacob Securities Inc. whereby Jacob Securities has agreed to advise Sierra Geothermal Power in respect of mergers and acquisitions in the geothermal space and assist it in seeking opportunities to expand its business. As consideration for these services, Sierra Geothermal has agreed to pay to Jacob Securities a cash fee in the amount of $50,000 and to issue to Jacob Securities 700,000 non-transferable unit warrants. Each unit warrant entitles the holder to purchase a unit at a price of $0.22 per unit until October 9, 2011. Each unit will consist of one Sierra Geothermal Power common share and one non-transferable common share purchase warrant (each, a “Unit Warrant”). Each Unit Warrant will entitle Jacob to purchase one Sierra Geothermal common share at a price of $0.30 until October 9, 2011.”
Source: Company announcement via Benzinga