Oct. 2, 2009 (Business Wire) -- Raser Technologies, Inc. (NYSE: RZ), an energy technology company, today announced it has signed an additional extension agreement with its financing partners for the final completion of the Thermo No. 1 plant.
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 October 1, 2009, and with the new agreement, the date has been reset to October 16, 2009. The Thermo Financing Agreements provide project financing and tax equity capital for the project and the Company is amending its Thermo Financing Agreements in order to be consistent with recent tax law changes under the American Recovery and Reinvestment Act of 2009. The Company is also amending other provisions and deadlines in the Thermo Financing Agreements related to bringing the project to full capacity. We expect to reach full capacity of 10 MW by the end of the year.
“The broader amendment is expected to result in more beneficial terms for all parties involved,” said Richard Clayton, Principal Executive Officer. “It would allow us to take full advantage of the 30% grant available under the American Recovery and Reinvestment Act of 2009, as certain changes made by the Recovery Act made it advisable for us and the Thermo No. 1 financing providers to restructure the Thermo No. 1 financing arrangements. In addition, it also reflects updated plant economics. We are confident that these modifications will provide us with the flexibility we need to complete the Thermo No. 1 plant and further maximize our ability to deliver clean, renewable energy in the future.”
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 about our ability to exploit available geothermal resources; our beliefs about our well field completion plan; our beliefs about the expected timing relating to the restructuring of our financial agreements; our beliefs about the economic benefits of contemplated financing structures, and our beliefs about our ability to qualify for government incentives. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the competitive environment and our ability to compete in the industry; our ability to adapt our technology and third-party technology for the intended applications; our ability to secure necessary permits; our ability to attract, train and retain key personnel; and such other 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.
