Business & Finance
Business and Finance
Business and Finance
Thu, June 30, 2011
Wed, June 29, 2011 
VANCOUVER, June 29, 2011 /CNW/ - Run of River Power Inc. ("ROR Power" or the "Company") (TSX-V: ROR) is pleased to announce that it has closed the first tranche ("Tranche 1") of the non-brokered private placement announced in the Company's June 23, 2011 news release (the "Private Placement"). Tranche 1 of the Private Placement involved a $1.6 million exchange of the Company's existing convertible debentures into new convertible debentures (the "Convertible Debentures").
The $1.6 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 closing date of June 28, 2011. At the option of the holder, the principal amount of the Convertible Debentures will be convertible into common shares of the Company (the "Shares") based on a conversion price of $0.11 per Share.
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 second tranche of the Private Placement will be comprised of up to $3.5 million in new Convertible Debentures and is expected to close on or about August 31, 2011. The proceeds of the Private Placement are to be used for working capital and general corporate purposes.
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.
