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Saturday, 02/17/2007 2:20:56 AM

Saturday, February 17, 2007 2:20:56 AM

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Railpower Technologies Corp. completes public offering raising net proceeds of approximately $32.0 million


MONTREAL, Feb. 13 /CNW/ - Railpower Technologies Corp. (TSX: P) (the
"Company") is pleased to announce that it has closed its previously announced
public offering (the "Offering") of 34,500,000 units ("Units") at a price of
$1.00 per Unit for aggregate gross proceeds to the Company of $34,500,000. The
Offering included the exercise in full of the underwriters' over-allotment
option to purchase an additional 4,500,000 Units. Each Unit consisted of one
common share in the share capital of the Company ("Common Share") and one-half
of one Common Share purchase warrant. Each whole Common Share purchase warrant
will entitle the holder thereof to purchase one Common Share at a price of
$1.25, on or before February 12, 2010.
The Units were sold through a syndicate of underwriters co-led by
Canaccord Capital Corporation and Sprott Securities Inc., and included
National Bank Financial Inc., Paradigm Capital Inc. and Pacific International
Securities Inc.
The Company intends to use the net proceeds of the offering as follows:
approximately $20.0 million for working capital purposes to: (i) finance the
fulfillment of the Company's current orders and future orders, depending on
the payment terms; and (ii) to support the level of inventory. The balance of
approximately $12.0 million will be used for continued technology research and
development purposes and new business development activities.