Raser Closes Up to US $19M Financing with Fletcher International

Raser Technologies Inc. this week announced that it sold US $5 million of convertible preferred stock plus an additional $14 million in investment rights, in a transaction that closed on February 3, 2010. The shares are being sold to Fletcher International Ltd. Raser intends to use the net proceeds from the transaction to further its geothermal development program and for general corporate purposes.

“We look forward to supporting Raser’s management in identifying and developing collaborations with partners and other opportunities in the geothermal and plug-in-hybrid vehicle industries,” said Moez Kaba, an executive from Fletcher Asset Management.

The preferred shares of Raser’s stock were purchased for an aggregate price of $5 million. As a holder of Raser preferred stock, Fletcher is entitled to quarterly dividends, payable in cash or shares of common stock, at an annual rate of LIBOR + 8% but no greater than 14%.

The preferred shares can be converted to common stock at a price of $5 per share and can be redeemed at a price of no less than $1.22 per share of common stock, after the earlier of six months after the closing date or the date on which the company’s common stock trades above $2.00 per share.

Fletcher may make additional investments of up to $14 million in preferred stock. The additional investment right expires: as to $7 million, between 6 and 12 months after closing and as to the remaining $7 million, between 12 and 36 months after closing, depending on certain conditions.

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