U.S. Geothermal raises $8.6 milllion in private placement

Raft River plant of U.S. Geothermal (source: company)

Alexander Richter 9 Mar 2010

U.S. Geothermal Inc. announced in a release, “that it has entered into a securities purchase agreement with several institutional investors, pursuant to which the Company has agreed to issue 8,209,519 shares of Common Stock at a price of $1.05 per share for gross proceeds of approximately $8.6 million (the “Private Placement”).

Pursuant to the terms of the Private Placement, each Investor will also be issued a common share purchase warrant (a “Warrant”) exercisable for 50% of the number of shares of Common Stock purchased by the investor. Each Warrant is exercisable at $1.25 per share for a period of five years beginning six months after the closing of the private placement. After deducting for fees and expenses, the net proceeds are anticipated to total approximately $8.0 million.

The net proceeds of the offering will be used by the Company to further develop its Neal Hot Springs geothermal project and for general working capital purposes. Initiating a planned capital project for Raft River Unit I and a well drilling program for a planned future expansion at San Emidio may be subject to completion of future financing.”

Source: Company release via Marketwire