Vancouver, BC – August 22, 2011 – Run of River Power Inc. (“ROR Power” or the “Company”) (TSX-V: ROR) is pleased to announce that it has elected to close the second tranche (“Tranche 2”) of the non-brokered private placement previously announced by the Company on June 23, 2011 (the “Private Placement”). Tranche 2 of the Private Placement involved the issuance of $2.5 million principal amount of convertible debentures of the Company (the “Convertible Debentures”).
“The $2.5 million we’ve raised satisfies our near term cash requirements. As a result, we’ve elected to close the second tranche,” explained Vick Dusik, ROR Power’s Chief Financial Officer.
The Convertible Debentures bear interest at a rate of 10% per annum, payable quarterly, and mature 36 months from the closing date of August 22, 2011. At the option of the holder, the principal amount of the Convertible Debentures will be convertible into common shares of the Company (the “Shares”) based on a conversion price of $0.12 per Share. Subject to the conversion rights, the Convertible Debentures are redeemable at the Company’s option at any time after nine months from the date of issuance.
The holders of the Convertible Debentures have the option to require early repayment in the event of default by the Company. The transfer of Convertible Debentures (and any Shares issued pursuant to the terms of the Convertible Debentures) is restricted four months and one day from the closing date in accordance with applicable securities laws.
The first tranche of the Private Placement involved the exchange of $1.6 million principal amount of previously issued Convertible Debentures for new Convertible Debentures of the Company and closed on June 28, 2011. The proceeds of the Private Placement will be used to fund ongoing development activities and for working capital and general corporate purposes.
About Run of River Power Inc.
ROR Power develops renewable, sustainable energy through its portfolio of clean energy 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 Power Project, awarded an Electricity Purchase Agreement by BC Hydro in 2010. ROR Power's total development potential in excess of 600 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, 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
Richard W. Hopp
President and CEO