PROVO, Utah - (Business Wire) Raser Technologies, Inc. (NYSE: RZ), an energy technology company, today announced it has signed an additional extension agreement until November 30, 2009, with its financing partners for the Thermo No. 1 plant. This extension will allow the parties time to finalize the documentation of certain amendments to the Thermo Financing Agreements. The contract extension amends the date by which Raser and its partners anticipate finalizing an updated agreement on the structure and final completion date of the Thermo No. 1 plant. The previous deadline was November 2, 2009. The Thermo Financing Agreements provide project financing and tax equity capital for the Thermo No. 1 project. The Company and its partners are restructuring the Thermo Financing Agreements in order to be consistent with recent tax law changes under the American Recovery and Reinvestment Act of 2009 (ARRA). The Company announced that the parties have made significant progress on the business terms of the expected restructuring and the Company expects to finalize documentation soon.
Once the amendments are complete, the Company will file for a Section 1603 renewable energy tax credit grant under the ARRA. The Company expects the grant proceeds to be in range of $30–$34 million. When the grant funds are received, the Company expects the funds will be used, among other things, to pre-pay a portion of the debt on the project and redeem the tax equity partner’s interest in the project at a negotiated price. Once the tax equity partner is redeemed, the Thermo No. 1 entity will be wholly-owned by the Company.
“We are pleased that our financing partners continue to work with us and show confidence in the Thermo No. 1 project,” said Richard Clayton, Principal Executive Officer. “We are confident that the final amendments will be beneficial to all involved and allow us to move forward with both completion of the Thermo No. 1 project and our other geothermal projects.”
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 is seeking to develop clean, renewable geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology. 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 regarding our ability to satisfy our remaining obligations under our line of credit.: These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the risks as identified in our quarterly report on Form 10-Q for the quarter ended June 30, 2009, 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 report.
Raser Technologies, Inc.
Investor Relations
Issa Arnita, 801-765-1200
investorrelations@rasertech.com
or
Hayden IR
Cameron Donahue, 651-653-1854
cameron@haydenir.com
