In a release, “U.S. Geothermal Inc. (TSX:GTH)(NYSE Amex:HTM) announced that it entered into agreements with a number of strategic investors, pursuant to which they have agreed to acquire, in total, approximately 5,000,000 Units (a “Unit”) of the Company at a price of $1.00. Each Unit consists of one share of common stock of the Company and one half of one common stock purchase warrant (a “Warrant”). Each Warrant will entitle the holder thereof to acquire one additional share of common stock of the Company for a period of 12 months following the closing of the offering for US$1.075 per share of common stock. The gross proceeds of the Unit offering are expected to be approximately US$5,000,000. A placement agent fee of 2.5% of the total number of Units is payable in conjunction with the majority of the offering outside of the United States.
The net proceeds of the offering will be used for general working capital, including exploration, development and expansion of its geothermal properties.
The offering is scheduled to close on or about March 4, 2011. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the NYSE Amex LLC.
The securities described above are being offered by the Company pursuant to a registration statement filed with the Securities and Exchange Commission (SEC), which became effective on December 1, 2010. A prospectus supplement relating to the offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. When available, copies of the prospectus supplement and accompanying base prospectus relating to this offering can be obtained at the SEC’s website at http://www.sec.gov, by the Company by e-mail to email@example.com, by fax to 208-424-1030, or by mail to 1505 Tyrell Lane, Boise, ID 83706, Attention: Chief Financial Officer.”
Source: Company release via Marketwire