Business & Finance
Business and Finance
Business and Finance
Fri, June 24, 2011
Thu, June 23, 2011 
VANCOUVER, June 23, 2011 /CNW/ - Run of River Power Inc. ("ROR Power" or the "Company") (TSX-V: ROR) today announced it will undertake a non-brokered private placement of up to $5.1 million in convertible debentures (the "Private Placement").
The transaction will be carried out in two tranches. The first tranche will involve a $1.6 million exchange of the Company's existing convertible debentures into new convertible debentures (the "Tranche 1 Convertible Debentures") and the second tranche will be comprised of a private placement of up to $3.5 million in new convertible debentures (the "Tranche 2 Convertible Debentures" and collectively, the Tranche 1 Convertible Debentures and the Tranche 2 Convertible Debentures, the "Convertible Debentures").
The $5.1 million principal amount of the Convertible Debentures will bear interest at a rate of 10% per annum, payable quarterly, and will mature 36 months from the date of completion of each respective tranche. At the option of the holder, the principal amount of the Tranche 1 Convertible Debentures will be convertible into common shares of the Company (the "Shares") based on a conversion price of $0.11 per Share. At the option of the holder, the principal amount of the Tranche 2 Convertible Debentures will be convertible into Shares of the Company at a rate equal to 125% of the Share price on the TSX Venture Exchange, which Share price will be calculated using the 5-day VWAP ending on the day immediately prior to August 31, 2011.
The holders of the Convertible Debentures have the option to require early repayment in the event of default by the Company. The Convertible Debentures (and any Shares issued pursuant to the terms of the Convertible Debentures) will be subject to a four-month and one day hold period in accordance with applicable securities laws. The proceeds of the private placement are to be used for working capital and general corporate purposes. The completion of tranche 1 of the Private Placement has received the approval of the TSX Venture Exchange and is expected to close on or about June 27, 2011.
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of clean energy projects. The Company operates an Eco Logo© certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR Power is well positioned for profitable growth through power generation initiatives that include its 25 MW Skookum Power Project, awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR Power's total development potential in excess of 600 MW represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self-sufficiency by 2016.
Forward-Looking Statements
Certain information regarding the Company set forth in this press release, including management's assessment of the Company's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's and management's control, including but not limited to, the completion of the private placement, the impact of general economic conditions, industry conditions, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The Company's actual results, performance or achievement could differ materially from those expressed in or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide any benefits to the Company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
