Eastern Europe-focused renewable energy developer Reservoir Capital has raised more than $3m through a share offering, which it will use to support feasibility studies on its Brodarevo hydroelectric projects in south-west Serbia.
The company completed a non-brokered private placement financing of $3,060,000 through issuing more than five million share units at $0.60 each.
Each unit includes a non-transferable common share purchase warrant that enables the purchase of additional shares for $0.80 over the year after the closing of the placement.
The share price under the warrant increases to $0.90 in the second year after the closing of the deal, subject to early expiration if the shares meet or exceed $1.20 in value for a set period.
The company said it paid finder’s fees to Haywood Securities, Global Resource Investments, Raymond James, All Group Financial Services, Northland Capital Partners and Trimark Trading, all of which helped locate investors.
It said the shares at the centre of the transaction are subject to a restricted resale period under Canadian securities law, and cannot be traded until March 2011.
In addition to the 58.4MW hydroelectric project that Reservoir Capital is developing in south-west Serbia, it holds four geothermal exploration licences in Serbia, and is applying for further licences to develop hydroelectric projects in Eastern Europe.
It is seeking to divest a portfolio of metal exploration properties in Serbia that it holds, all of which are joint ventures.
Its common shares are listed on the TSX Venture Exchange, the Frankfurt and Berlin exchanges.
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