Raser Technologies, Inc. (NYSE Arca: RZ) announced it has arranged for a $20 million private placement of its common stock with one unnamed institutional investor.
The investor will purchase 2 million shares at the initial closing, scheduled for November 14, 2008, for $10 million, or $5.00 per share. That’s a premium of 43% from the current price.
At a second closing, scheduled for December 12, 2008, the investor will purchase an additional $10 million of Raser’s common stock at a purchase price to be determined.
Raser granted the purchaser a warrant for up to $20 million in additional shares.
The funds will be used to further Raser’s geothermal development and for general corporate purposes.
Raser operates in two business segments. Its Power Systems segment develops geothermal plants and bottom-cycling operations, incorporating licensed heat transfer technology and Raser’s SymetronTM technology developed internally by its Transportation and Industrial Technology segment.
Its Transportation and Industrial Technology segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s SymetronTM technology to improve the torque density and efficiency of the electric motors and drive systems used in electric and hybrid-electric vehicle powertrains and industrial applications.
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