By Devika Patel
Knoxville, Tenn., Feb. 4 - Raser Technologies, Inc. gave further details about a $5 million registered direct offering of series A-1 cumulative convertible preferred stock with Fletcher International, Ltd. The deal priced Feb. 3 and settled a few hours later.
The company sold 5,000 preferreds at $1,000 per preferred along with warrants for 5,000 preferreds. It may sell up to 19,000 of the preferreds and 14,000 warrants. The warrants are exercisable at $1,000.
The preferreds pay dividends at an annualized rate of Libor plus 800 basis points, with a cap of 14%. They are convertible into 15,523,000 common shares at $5.00 per share and may be redeemed at a minimum price of $1.22 per common share. The $1.22 per share redemption price floor represents a 37% premium to the closing price of the stock on Feb. 3.
CapStone Investments was the underwriter.
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
|
| Shares: | 5,000
|
| Price: | $1,000
|
| Dividends: | Libor plus 800 bps, cap of 14%
|
| Conversion price: | $5.00
|
| Conversion ratio: | Into 15,523,000 common shares
|
| Warrants: | For 5,000 preferreds
|
| Warrant strike price: | $1,000
|
| Underwriter: | CapStone Investments
|
| Investor: | Fletcher International, Ltd.
|
| Pricing date: | Feb. 3
|
| Settlement date: | Feb. 3
|
| Stock symbol: | NYSE: RZ
|
| Stock price: | $0.89 at close Feb. 3
|
| Market capitalization: | $77.7 million
|
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