By Devika Patel
Knoxville, Tenn., Feb. 3 - Raser Technologies, Inc. began a registered direct offering of series A-1 cumulative convertible preferred stock to raise about $5 million, according to a prospectus supplement filed Wednesday with the Securities and Exchange Commission.
The company is selling up to 19,000 preferreds along with warrants for 14,000 preferreds. Up to 5,000 of the preferreds will be sold at $1,000 per preferred. The warrants for the first 5,000 preferreds are exercisable at $1,000.
The preferreds pay dividends at an annualized rate of Libor plus 8%, with a cap of 14%. They are convertible into 15,523,000 common shares.
CapStone Investments is the underwriter.
Settlement is expected on Feb. 3.
Proceeds will be used for general corporate purposes.
Provo, Utah-based Raser is a technology licensing and development company focused on geothermal power generation.
| Issuer: | Raser Technologies, Inc.
|
| Issue: | Series A-1 cumulative convertible preferred stock
|
| Amount: | $5 million (approximate)
|
| Shares: | Up to 19,000
|
| Price: | $1,000 (up to 5,000 preferreds)
|
| Dividends: | London Interbank Offer Rate plus 8%, cap of 14%.
|
| Conversion ratio: | Into 15,523,000 common shares
|
| Warrants: | For 14,000 preferreds
|
| Warrant strike price: | $1,000 (first 5,000 warrants)
|
| Underwriter: | CapStone Investments
|
| Pricing date: | Feb. 3
|
| Settlement date: | Feb. 3
|
| Stock symbol: | NYSE: RZ
|
| Stock price: | $0.89 at close Feb. 3
|
| Market capitalization: | $70.5 million
|
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