Vancouver, BC – April 14, 2011 – Run of River Power Inc. ("ROR Power" or the "Company") (TSXV: ROR) today announced a non-brokered private placement of up to 16,666,667 units of the Company (the "Unit") at a price of $0.09 per Unit for aggregate gross proceeds of up to $1,500,000. The Units will consist of one common share of the Company and one-half of one warrant (each whole warrant, a "Warrant"). Each Warrant will be exercisable for one common share of the Company for a period of 12 months from the closing date at an exercise price of $0.12. All securities issued pursuant to this private placement will be subject to a four month and one day hold period after the closing date.
Insiders of the Company will be subscribing for 11,666,666 Units of the 16,666,667 Units issued, which is greater than 25% of the private placement. These insiders are Real Gamache, Peter Zell and Brett Robinson. 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 an exemption from the minority approval requirements of MI 61-101 as the fair market value does not exceed the applicable limit set out in MI 61-101.
The private placement is subject to the approval of the TSX Venture Exchange. The private placement is expected to close on or about April 20, 2011. 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.
Run of River Power Inc. develops renewable, sustainable energy through its portfolio of run-of-river and biomass projects. The Company operates an Eco Logo© 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 power generation initiatives that include its 25 MW Skookum Creek Power Project, awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR Power’s total development potential of 715 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, 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.
Chief Financial Officer
Tel: (604) 946-9232
President and CEO