Raser Technologies Inc. (fka RZTQE)

[califax]

Raser Technologies Announces $25.5 Million Registered Direct Offering

Date : 06/30/2009 @ 9:24AM
http://ih.advfn.com/p.php?pid=nmona&cb=1246385903&article=38436229&symbol=NY^RZ

Raser Technologies, Inc. (NYSE: RZ) announced today that it has obtained commitments from institutional investors to purchase approximately $25.5 million of its common stock and warrants in a registered direct offering.

Under the terms of the definitive agreements, Raser will sell an aggregate of 8,550,339 units, with each unit consisting of (i) one share of its common stock, $0.01 par value per share (“Common Stock”) and (ii) one warrant to purchase 0.50 shares of its Common Stock, in a registered direct offering for gross proceeds of approximately $25.5 million, before deducting placement agents’ fees and estimated offering expenses. The investors have agreed to purchase the units at a 22.5% ($0.86625) discount to the Common Stock’s closing price on June 29, 2009 of $3.85. The warrants are exercisable at any time on or after the date of issuance at a price of $4.62 per share and will expire five years from the date of issuance.

The securities described above are being offered directly by Raser pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. Raser anticipates that the net proceeds from the offering of approximately $23.8 million will be used for general corporate purposes, which may include working capital, power plant construction expenses, well field development activities for the geothermal power plants we intend to develop, repayment of outstanding obligations, capital expenditures and development costs. The closing of this offering is expected to occur on or about July 6, 2009, subject to satisfaction of customary closing conditions.

Calyon Securities (USA) Inc. served as lead placement agent and RBC Capital Markets and JMP Securities LLC served as co-placement agents for the offering. Copies of the prospectus supplement and accompanying base prospectus relating to the public offering may be obtained from the Securities and Exchange Commission website at http://www.sec.gov or from Raser Technologies, Inc. at 5152 North Edgewood Drive, Suite 375, Provo, Utah 84604, Attn: Investor Relations, or [e-mail].

This press release does not and shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities, nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction.