By Devika Patel
Knoxville, Tenn., Jan. 30 - Raser Technologies, Inc. arranged a $15 million line of credit with a syndicate of four lenders.
Under the agreement, advances will accrue interest at the rate of 10% per annum.
Unless the lenders agree to a later date, the line of credit will mature and must be repaid by Nov. 15, 2009.
Each lender will also receive warrants for each advance. The number of warrants will be equal to 50% of the total amount invested by the lender divided by the price of the common stock at the time of the advance.
The warrants will have an exercise price of $6.00.
Proceeds will be used for working capital and general corporate purposes.
Provo, Utah-based Raser is a technology licensing and development company focused on geothermal power generation.
| Issuer: | Raser Technologies, Inc.
|
| Issue: | Equity line of credit
|
| Amount: | $15 million
|
| Tenor: | Nov. 15, 2009
|
| Coupon: | 10%
|
| Warrants: | Yes
|
| Warrant strike price: | $6.00
|
| Settlement date: | Jan. 30
|
| Stock symbol: | NYSE: RZ
|
| Stock price: | $3.62 at close Jan. 29
|
| Market capitalization: | $231 million
|
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