RZ Raser Technologies, Inc.

Raser Technologies, Inc. (NYSE: RZ), an energy technology company, announced today that it has entered into an agreement with the senior secured lender that provided the debt financing for the Thermo No. 1 geothermal power plant to repay a substantial portion of the debt.

Under the arrangement, the lender will receive an immediate payment of $27 million out of project escrow accounts and will waive compliance with applicable debt-related covenants and obligations for the next year. In addition, Raser will make an additional payment of up to $6 million before June 29, 2011. Over the next 12 months, Raser will follow its plan to sell certain assets which will help establish the value of the Company’s portfolio. As part of this process, Raser will satisfy the remaining obligation to the Thermo lender from the sale proceeds of a part or all of its interest in Thermo No. 1 or another asset. Alternatively, Raser can satisfy this obligation using cash from other sources. After providing for the initial payment to the lender, approximately $3 million of currently escrowed funds will remain in a project escrow account to provide for the operation of the plant and other related expenses.

The Thermo No. 1 plant is currently producing a little over six megawatts of electricity that is available for sale. While this is below the original anticipated output level, several unaffiliated, geothermal equipment manufacturers have indicated to Raser that, in their judgment, significant improvement in the electrical output of Thermo No. 1 is possible. They have represented to Raser that the addition of larger, more efficient generators at the Thermo No. 1 project would enable the generation of between 9-11 megawatts of electricity, based on current geothermal flow and temperature conditions.

Nick Goodman, Raser’s CEO, commented, “Raser would need additional capital to install larger generating units at our Thermo No. 1 project. Therefore, instead of upgrading the units ourselves, we are considering the sale of equity interests in the Thermo No. 1 project while maintaining ownership in the remaining Thermo field - a resource that GeothermEx reports has the potential to produce an additional 150-200 megawatts of geothermal power. If we are able to sell our interests in Thermo No. 1 to a third party with the capital to upgrade the generators at the Thermo No. 1 project, we believe it will further validate the larger Thermo area, demonstrating the viability of the Thermo area resource for additional power plants.”

About Raser Technologies

Raser (NYSE: RZ) is an environmental energy technology company focused on geothermal power development and technology licensing. Raser’s Power Systems segment develops clean, renewable geothermal electric power plants with one operating plant in southern Utah and eight active and early stage projects in four western United States: Utah, New Mexico, Nevada and Oregon, as well as a concession for 100,000 acres in Indonesia. Raser’s Transportation and Industrial segment focuses on extended-range plug-in-hybrid vehicle solutions and using Raser’s award-winning Symetron™ 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. Further information on Raser may be found at: www.rasertech.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, but not limited to, statements regarding; our beliefs about our ability to sell all or a portion of our interests in Thermo No. 1; our beliefs about our ability to make the remaining $6 million payment to the lender that provided the debt financing for the Thermo No. 1 plant; our beliefs about the anticipated improvement in output level if larger generators are used at the Thermo No. 1 plant; our beliefs regarding the strength and enforceability of our agreements; our belief about our ability to develop future geothermal projects and the geothermal industry in general. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to attract, train and retain key personnel; and such other risks as identified in our quarterly report on Form 10-Q for the quarter ended March 31, 2010, as filed with the Securities and Exchange Commission, and all subsequent filings.

All forward-looking statements in this press release are based on information available to us as of the date hereof, and we undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.

Raser Technologies, Inc. (NYSE:RZ)
Historical Stock Chart
Von Nov 2024 bis Dez 2024

Raser Technologies, Inc. (NYSE:RZ)
Historical Stock Chart
Von Dez 2023 bis Dez 2024