VANCOUVER, Dec. 30, 2009 /CNW/ - Run of River Power Inc. ("ROR Power" or the "Company") (TSX-V: ROR) today announced a non-brokered private placement of 12,200,260 common shares of the Company (the "Shares") at a price of $0.19 per Share for aggregate gross proceeds of $2,318,050. All Shares issued pursuant to this private placement will be subject to a four month hold period in accordance with Canadian securities laws.
Insiders of the Company will be subscribing for 4,857,525 Shares of the 12,200,260 Shares issued, which is greater than 25% of the private placement. These insiders are Scott Paterson, Peter Zell, Ross Gorell, Rick Hopp, Jako Krushnisky, Vick Dusik, Brian Hanson and Michael Sweatman. Accordingly, the private placement 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 the exemptions from the formal valuation and minority approval requirements of MI 61-101 as neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the private placement will exceed 25% of the Company's market capitalization.
"I am delighted with the confidence our board and colleagues have demonstrated, investing over $2.3 million in this private placement, at this critical juncture in the Company's history," said Jako Krushnisky, President and CEO of ROR Power.
The private placement is subject to the approval of the TSX Venture Exchange. The private placement is expected to close on or about December 31, 2009. The Company intends to use the proceeds of the private placement for the continued development of the Company's renewable energy projects and for general working capital purposes.
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects in British Columbia (BC). The company operates an Eco Logo(C) certified hydroelectric power generation station at Brandywine Creek, near Whistler, BC that generates cash flow under a 20-year contract with BC Hydro. ROR Power is well positioned for profitable growth through the company's high-quality power generation initiatives. ROR Power's total development potential, in excess of 740 MW, represents a significant opportunity to help BC meet its rising demand for clean, sustainable power and achieve energy self sufficiency by 2016.
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 completion of the private placement, the impact of general economic conditions, industry conditions, fluctuation of foreign exchange rates, imperfection of reserve estimates, 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: For further information: Information Contact: Jako Krushnisky, President and CEO, Run of River Power Inc., Tel: (604) 946-9232, firstname.lastname@example.org; Vick Dusik, Chief Financial Officer, Run of River Power Inc., Tel: (604) 946-9232, email@example.com; www.runofriverpower.com