Boise, Idaho - March 16, 2010 (NYSE Amex: HTM, TSX: GTH) U.S. Geothermal Inc. (the "Company") announced today closing of a private placement financing pursuant to which the Company has issued 8,209,519 shares of Common Stock at a price of $1.05 per share for gross proceeds of $8.6 million (the "Private Placement"). Each Investor was also issued a common share purchase warrant (a "Warrant") exercisable for 50% of the number of shares of Common Stock purchased by the investor. Each Warrant is exercisable at $1.25 per share for a period of five years beginning September 16, 2010. After deducting for fees and expenses, the net proceeds to the Company are approximately $8.0 million. The net proceeds of the offering will be used by the Company to further develop its Neal Hot Springs geothermal project and for general working capital purposes.
Daniel Kunz, President and CEO of U.S. Geothermal Inc. said, "We believe this capital raise will help create significant value for all our shareholders by permitting us to commence drilling of the final production wells at Neal Hot Springs."
RBC Capital Markets Corporation served as lead placement agent and Clarus Securities Inc., Dundee Securities Corporation and Baird acted as co-agents.
The Company will file a resale registration statement before April 15, 2010 and will use its best efforts to cause the registration statement to be declared effective within 120 days of the closing date. The Private Placement was made upon an exemption from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 4(2) thereof.
The securities described herein have not been registered under the U.S. Securities Act of l933, as amended, or any state securities laws and may not be offered or sold in the United States or to U.S. persons unless an exemption from registration is available. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.
About U.S. Geothermal Inc.:
U.S. Geothermal Inc. is a renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. U.S. Geothermal Inc. recently announced signing of a power purchase agreement and is in the final stages of negotiations for a project loan as part of its development activities at Neal Hot Springs in eastern Oregon.
Please visit our Website at: www.usgeothermal.com
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