Alter Nrg Corp. announces $35 million initial public offering, acquisition of a private gasification company, and a corporate restructuring



    TSXV: NRG

    CALGARY, April 17 /CNW/ - Alter Nrg Corp. ("Alter Nrg" or the "Company")
is pleased to announce that it has completed an Initial Public Offering (the
"Offering") of 15,555,556 Common Shares for gross proceeds of $35 million. The
Offering was made through a syndicate co-led by Wellington West Capital
Markets Inc. and Canaccord Adams and including Raymond James Ltd., TD
Securities Inc. and Paradigm Capital Inc. The Company has granted the Agents
an over-allotment option, exercisable for up to 30 days following the closing
of the Offering, for an additional number of Common Shares equal to 15% of the
number of Common Shares issued pursuant to the Offering at a price of $2.25
per Common Share.
    The primary use of proceeds was to satisfy the cash component of the
US$29 million acquisition of Westinghouse Plasma Corporation ("WPC"), a
private gasification company based in the United States which has a patented
plasma gasification technology. The consideration for the acquisition was
US$22 million cash and US$7 million in Alter Nrg Common Shares, at the $2.25
Offering price. The acquisition of WPC provides a number of benefits to the
Company including:

    
    -   Access to an industry leading and commercially proven plasma
        gasification technology

    -   Existing cash flow stream with additional revenue potential from
        increased business development efforts and additional product
        applications

    -   Direction over the continued development of the WPC technology

    -   Access to research and development capabilities

    -   Broader gasification solution for customers through the combination
        of WPC's plasma gasification experience with the Company's
        engineering, construction and balance of plant expertise
    

    The Company has also filed on SEDAR (www.sedar.com) a coal resource
report for the Fox Creek area. This resource provides a significant resource
base to grow future energy production.
    Mark Montemurro, President and CEO of Alter Nrg, states, "This is an
exciting time for Alter Nrg as we position ourselves to be a leader in the
growing gasification market in North America. The acquisition of a world class
gasification technology provides us the flexibility and control to better
implement our business plan and will be an accretive acquisition for our
shareholders. Moving forward with a strong technology, a suitable resource
base and a strong team provides us with exciting opportunities for future
growth."
    Michael Heier, Chairman of the Board, states, "Alter Nrg is something
that I have been focused on for more than a decade. After formally commencing
operations in March of 2006, I have been pleased with how quickly and
effectively the Company has built itself into a leading gasification player. I
look forward to the opportunities ahead and believe we will be opportunity
rich in an emerging market."
    As part of the Offering, the Company was re-organized from a mutual fund
trust structure to a corporate structure through a statutory plan of
arrangement under the Business Corporations Act (Alberta). The Company's
Common Shares are listed on the TSX Venture Exchange under the trading symbol
"NRG".

    Alter Nrg is a development-stage entity pursuing alternative energy
solutions to meet the growing demand for environmentally responsible energy in
world markets. The Company's vision is to become a North American leader in
the development of innovative gasification projects for the commercial
production of energy. The Company's objective for the next decade is to become
a senior energy producer of hydrogen, syngas, and transportation fuels such as
biodegradable sulphur-free diesel, ethanol, steam and electricity, all of
which are fundamental products for the world's growing energy needs.
Additional information about Alter Nrg and this transaction is available on
SEDAR.

    This news release does not constitute an offer to sell or the
solicitation of an offer to buy any securities of this Company within the
United States. The securities offered have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, or any state securities
laws, and may not be offered or sold in the United States or to or for the
account or benefit of a U.S. person absent registration or an applicable
exemption from the registration requirements of such Act or laws.

    This document may contain or refer to forward-looking information based
on current expectations. Forward-looking statements are subject to significant
risks and uncertainties, and other factors that could cause actual results to
differ materially from expected results. These forward-looking statements are
made as of the date hereof and the Company assumes no responsibility to update
or revise them to reflect new events or circumstances.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.





For further information:

For further information: Mark Montemurro, President and Chief Executive
Officer, (403) 806-3877, Mmontemurro@alternrg.ca; Daniel Hay, Chief Financial
Officer, (403) 806-3881, Dhay@alternrg.ca; Investor Relations, (403) 806-3875,
info@alternrg.ca

Organization Profile

Alter NRG Corp.

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