VANCOUVER, July 26, 2012 /CNW/ - Run of River Power Inc. ("ROR Power" or the "Company") (TSXV: ROR) today announced that it has completed a private placement
of $3.65 million in subordinated secured debentures ("Debentures"). The principal amount of the Debentures will bear interest at a rate
of 12% per annum, payable quarterly in cash, and the Debentures will
mature in one year. The proceeds of the private placement will be used
to develop, with its partner Concord Pacific, the Skookum power project
and for general corporate and working capital requirements.
A related party of the Company will be subscribing for $2 million in
Debentures. Accordingly, the transaction will be a "related party
transaction" for the purposes of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company will rely on an exemption from the minority approval and
valuation requirements of MI 61-101.
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio
of clean energy projects. The company helps diversify BC's energy mix
by providing a cleaner way to generate power and increasing the
security of BC's energy supply. ROR Power operates an Eco Logo©
certified hydroelectric power generation station at Brandywine Creek,
near Whistler, BC that provides green power for about 4,000 homes. With
a total development potential of approximately 400 MW, the company is
well positioned for profitable growth.
Certain information regarding the Company set forth in this press
release, including management's assessment of the Company's future
plans and operations contains forward looking statements that involve
substantial known and unknown risks and uncertainties. These forward
looking statements are subject to numerous risks and uncertainties,
some of which are beyond the Company's and management's control,
including but not limited to, the repayment of the Debentures, the
impact of general economic conditions, industry conditions, fluctuation
of foreign exchange rates, environmental risks, industry competition,
availability of qualified personnel and management, stock market
volatility, timely and cost effective access to sufficient capital from
internal and external sources. The Company's actual results,
performance or achievement could differ materially from those expressed
in or implied by, these forward looking statements and accordingly, no
assurance can be given that any of the events anticipated to occur or
transpire from the forward looking statements will provide any benefits
to the Company.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Run of River Power Inc.
For further information:
Richard W. Hopp
President and CEO