WorldWater & Power Corp. (OTCBB:WWAT.OB) has announced $6.9 million in new financing and has been awarded a $4.9 million contract to build solar systems for Hightstown, New Jersey.
New Financing of Up To $6.9 Million
Worldwater has signed a term sheet for up to $5.0 million in financing through the sale of convertible debentures lead by an existing institutional investor. Additionally, the existing institutional investor has agreed to exercise warrants which will result in the infusion of $1.9 million of additional funds into the Company.
The debentures are comprised of two tranches, with up to $3.0 million to be funded upon closing of the debenture transaction and up to $2.0 million to be advanced upon satisfaction of certain conditions. The debentures are convertible into common stock of the Company at the lower of the 10-day volume weighted average price prior to closing or $0.40 per share. The debenture agreement is subject to completion of due diligence and definitive documentation. WorldWater & Power expects to close the $3.0 million tranche and receiving funding within ten business days.
“By providing additional financing to cover our growth requirements, an existing investment firm has shown its conviction in our technology and business model,” commented Quentin T. Kelly, Chairman of WorldWater & Power Corp. “As we respond to the demands of the marketplace, we expect to see sequential growth which validates our unique applications, rapid response time, and dedication to customers seeking long-term solar solutions to their energy needs.”
Awarded $4.9 Million New Jersey Solar Systems Contract
WorldWater has signed a contract with the Borough of Hightstown in Central New Jersey to build two solar power systems on water facilities, subject to financing. One installation will serve a water treatment plant and public works garage, while the other will power a wastewater treatment facility. Construction value of the complete project is $4.9 million.
On signing the contract, Mayor Robert Patten of Hightstown said, “We are proud to offer our community clean power that saves money – from the first day through at least 10 years – by working with WorldWater & Power Corp. Our water utilities can be powered by the WorldWater solar systems with no capital outlay and with reduced annual electricity costs guaranteed. I am confident that WorldWater & Power Corporation will be a long term partner in assisting Hightstown to become more prosperous and efficient.”
Under WorldWater’s Alternative Clean Energy Service (ACES) plan, the Borough of Hightstown will purchase solar electricity from an external financial entity, arranged by WorldWater, at a rate that is guaranteed to be lower than the rate they would pay their conventional electric utility. WorldWater & Power will design, install and maintain the system. Solar power will automatically run in parallel with the public utility for seamless and improved reliability.
Quentin T. Kelly, Chairman of WorldWater & Power Corp. commented, “We’re delighted to be working with the forward-looking officials in Hightstown. With the general rise in costs of government services, more and more New Jersey municipal and county governments are considering our solar electric systems as a logical, environmentally smart way to reduce operating costs and better serve their residents. In particular I congratulate Hightstown’s Mayor, Robert Patten, and the Borough Council for their leadership in recognizing the added values of clean, economical solar power.”
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