By Sheri Kasprzak
Atlanta, April 4 - Raser Technologies Inc. will raise $20 million in a private placement, according to a source familiar with the offering.
The company plans to sell the series C preferred stock to a group of institutional investors.
The preferreds are convertible into common shares at $24 each, a 9% discount to the average closing price for 10 days ending March 31. The preferreds do not pay dividends.
The preferreds will automatically convert into common shares 60 days after a registration statement is effective.
The investors will also receive common-stock warrants equal to 20% of the shares issued upon conversion at $24 each, exercisable for up to 90 days after the registration statement if effective.
The offering is expected to close April 6.
Based in Provo, Utah, Raser develops technologies for electric motors, controllers, alternators and generators.
| Issuer: | Raser Technologies Inc.
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| Issue: | Series C preferred stock
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| Amount: | $20 million
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| Conversion price: | $24.00
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| Call: | Automatically convert into common shares 60 days after registration statement is effective
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| Warrants: | Equal to 20% of the shares issued upon conversion
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| Warrant expiration: | 90 days after registration statement is effective
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| Warrant strike price: | $24.00
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| Pricing date: | April 4
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| Settlement date: | April 6
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| Stock price: | $33.40 at close April 1
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