U.S. Geothermal Announces $4.37 Million Financing
BOISE, IDAHO -- (Marketwire) -- 12/21/12 -- U.S. Geothermal Inc. (TSX: GTH)(NYSE Amex: HTM)(NYSE MKT: HTM) (the "Company") announces today that it entered into agreements with a number of investors, pursuant to which they have agreed to acquire, in total, approximately 11,810,816 Units (a "Unit") of the Company at a price of $0.37 per Unit. Each Unit consists of one share of common stock of the Company and one half of one common stock purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to acquire one additional share of common stock of the Company for a period of 60 months following the closing of the offering for US$0.50 per share of common stock. The gross proceeds of the Unit offering are expected to be approximately US$4.37 million.
Kuhns Brothers Securities Corporation is acting as placement agent for this offering.
The net proceeds of the offering will be used for the payment of fees and expenses associated with refinancing the San Emidio construction loan, to continue the advancement of the El Ceibillo project in Guatemala, and general corporate purposes.
The offering is scheduled to close on or about December 26, 2012. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the NYSE MKT LLC.
The securities described above are being offered by the Company pursuant to a registration statement filed with the Securities and Exchange Commission (SEC), which became effective on December 1, 2010. A prospectus supplement relating to the offering will be filed with the SEC (SCUR) and will be available on the SEC's website located at www.sec.gov. When available, copies of the prospectus supplement and accompanying base prospectus relating to this offering can be obtained at the SEC's website at http://www.sec.gov, or from the Company by e-mail to info@usgeothermal.com, by fax to 208-424-1030, or by mail to 1505 Tyrell Lane, Boise, ID 83706, Attention: Chief Financial Officer.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About U.S. Geothermal:
U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects at Raft River, Idaho, San Emidio, Nevada and Neal Hot Springs, Oregon. The company is developing El Ceibillo, an advanced stage, steam geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, including statements regarding the ability to complete the offering and the use of proceeds of the anticipated offering. These statements are based on U.S. Geothermal Inc.'s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.
The NYSE MKT and the Toronto Stock Exchange do not accept responsibility for the adequacy of this release.
Contacts: U.S. Geothermal Inc. Saf Dhillon Investor Relations 866-687-7059 208-424-1030 (FAX) saf@usgeothermal.com www.usgeothermal.com
Source: U.S. Geothermal Inc.
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arose126 Comments (83)Now this is a little disappointing, diluting our shares even further! Rather than waiting for 6 months of steady Revenue to accumulate then pursuing full on Guatemala. With all three of their revenue streams turned on within 6 months they would have solid reserve, we could see their true finances as they are going calendar year now, and we would be able to make appropriate moves either Dump their stock or Buy more. This move is Pre Mature to say the least, now we have to make the call to Gamble, or close your hand. -
arose126 Comments (83)OK, I am Long this stock and this was a bit of a rub, the least they could have done was offer us long time shareholders a little taste. Not that I would be looking for much but I would have taken another thousand shares at this offer, and that would have been a nice reward for the long term investment I have been holding, and plan on continuing to hold. I may not be big money but I have been there for the whole time.
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arose126 Comments (83)Wasn't able to get in on this special offer but since they brought the share price down to .37 I could not resist and jumped in for another thousand shares. Lets see how this ride turns out, they do have my support for the long run. Weather or not I agreed with this particular move, there is to much potential here to ignore.
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arose126 Comments (83)Well since I missed out on the offer, I made my own. I purchased 1,000 shares Friday, and I matched it today with another 1,000 shares cost averaging .375. This way I do not have to wait on a warrant and since I have such a strong belief in what I see here, why not. Now if they dilute us any more I will not be happy but this little company is going to make it to the big league soon enough. Crazy I know but sometimes you just have to go with your gut.
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arose126 Comments (83)Today since the price was still cheap, picked up another 2,000 shares just because I know where this company is going. I was in on other Geothermal Companies that failed, this one is the survivor, and going profitable in the not to distant future. Everyone will see this soon enough, should be visible March/April time frame then we move up from there. This is the consistent Green Energy, once in operation they run 24/7 352 days a year, unlike many other Green Energies that are dependent on things like if the Sun Shines or Not, is the wind Blowing or Not, etc. etc. etc. Geothermal Go's and Go's and Go's.
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arose126 Comments (83)Well once again found myself unable to resist the bargain, incrasesd my holdings. Now even with my old holdings purchased at over $2.00 per share I am at .51 per share and ready for the ride up. Those investors with the .50 warrents instead of waiting for them to come in might want to think about letting them go and buying now at this rediculously low price, and take the ride for some tremendous gains potential here.
