Idaho, United States [RenewableEnergyWorld.com] U.S. Geothermal Inc.has entered into a securities purchase agreement with several institutional investors. According to the terms of the agreement, the company has agreed to issue 8,209,519 shares of Common Stock at a price of US $1.05 per share for gross proceeds of approximately $8.6 million.
Under the agreement each of the investors will also be issued a common share purchase 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 million.
The net proceeds of the offering will be used by U.S. Geothermal 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.
The Private Placement is subject to the approval of the NYSE Amex and the Toronto Stock Exchange and is anticipated to close on or about March 12, 2010. The company will be required to file a resale registration statement within 30 days of the closing date and will use its best efforts to cause the registration statement to be declared effective within 120 days of the closing date.