Raser Closes Initial Funding of Private Placement

Raser Technologies, Inc. announced that the sale of the initial US $10 million of its common stock, under an agreement relating to the private placement of US $20 million of its common stock announced last week, closed on November 14, 2008.

Pursuant to the initial closing, 2 million shares were sold to Fletcher International Limited, an affiliate of Fletcher Asset Management, an SEC Registered Investment Advisor. The 2 million shares of Raser‘s common stock were purchased for an aggregate price of US $10 million, or US $5 per share, representing a premium of 43% over the closing price of Raser’s common stock on November 12, 2008, the most recent closing price available on the date the transaction was priced.

The second closing is scheduled for December 12, 2008, at which time Fletcher has agreed to purchase an additional US $10 million of Raser’s common stock at a purchase price to be determined pursuant to a formula based on the average daily market prices of Raser’s common stock prior to the second closing, plus a premium.

“Many companies are pursuing the ultimate goals of clean, inexpensive, domestically generated energy, but few have the scale, technology and financial backing to accomplish these goals,” said Fletcher Vice Chairman Kell Benson. “We are enthusiastic about our investment in Raser and believe its geothermal power projects will contribute to President-elect Barack Obama’s goals of energy independence, new jobs and environmental protection.”

In addition to the common stock closing, Fletcher received a ten-year warrant in connection with the transactions. The warrant gives Fletcher the right to acquire up to US $20 million of additional shares of Raser’s common stock at a price per share equal to the lesser of US $6 or a price determined pursuant to a formula based on the average daily market prices of Raser’s common stock prior to the exercise of the warrant, less a discount.

After a period of nine months, or earlier if certain conditions occur, Fletcher will have the right to exercise the warrant on a cashless, net settlement basis. Upon completion of the second closing, the warrant will be exercisable with respect to the full $20 million of common stock.

 

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