Finavera Renewables Inc. Announces Private Placement
VANCOUVER, BRITISH COLUMBIA -- (MARKET WIRE) -- 10/23/07 -- NOT FOR
DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES
Finavera Renewables Inc. (TSX VENTURE: FVR) ("Finavera" or the
"Company") today announced that it has engaged Dundee Securities
Corp. and CIBC World Markets Inc. (the "Agents") in connection with a
best efforts private placement of units (the "Units"), to raise up to
57,500,000 Units at a price of $0.40 per share for gross proceeds of
$23,000,000. The Agents will have an option to purchase up to an
additional 12,500,000 ($5,000,000) Units at the issue price,
exercisable in whole or in part at any time until 1 day prior to the
closing date. Each Unit consists of one common share (the "Common
Shares") and one Common Share purchase warrant ("Warrant"). Each
Warrant will be exercisable for one common share in the Company at a
price of $0.70 for a period of 24-months following the closing date.
The exercise period of the warrants may be accelerated by the Company
if the average price of the Common Shares exceeds $1.05 for a period
of 20 consecutive trading days. Finavera plans to use the net
proceeds of this financing to acquire a previously announced wind
project in Germany, subject to satisfactory completion of final due
diligence, as well as for general corporate purposes.
The Offering is expected to close in November 2007 subject to receipt
of applicable regulatory approvals including the approval of the TSX
The proposed offering will be a private placement to "Accredited
Investors" in the Provinces of Alberta, British Columbia,
Saskatchewan, Quebec and Ontario and in the United States to
"Qualified Institutional Buyers" and to a limited number of
institutional "Accredited Investors" pursuant to registration
exemptions of the U.S. Securities Act of 1933. The Units and Warrants
will be subject to a hold period of four months from the date of
issuance in accordance with the policies of the TSX Venture Exchange
and applicable securities laws.
The Agents will receive a cash commission of 7% of the gross proceeds
raised in the Offering. The Agents will also be entitled to receive
compensation options to acquire at the offering price that number of
Units equal to 7% of the number of Units sold pursuant to the
Offering. The Agents' compensation will be reduced in respect of
specified possible investors.
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or exemption from the
registration requirements. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities in any State in which such offer,
solicitation or sale would be unlawful.
On behalf of the Board of Directors,
Jason Bak, CEO
About Finavera Renewables Inc. (www.finavera.com)
Finavera Renewables Inc. is dedicated to the development of renewable
energy resources and technologies. The Company's objective is to
become a major renewable and green energy producer by developing and
operating its assets in the wind and wave energy sectors. Finavera
Renewables Inc. is developing the licensed and patented 'AquaBuOY'
wave energy technology, a device that is based on proven and
sustainable buoy technology. The Company is developing wave energy
projects for AquaBuOY use in the United States, Portugal, South
Africa and Canada. The Company is also developing other wind energy
projects in Canada and Ireland. In Canada, a two stage 150 MW project
is being developed in Alberta. Construction on this advance stage
project is estimated to begin in 2008 and provides for near term
revenue. In British Columbia, four projects totaling 366 MW have been
entered into the provincial Environmental Assessment process, and
several other sites are being developed. In Ireland, two
pre-construction wind projects are under development with a potential
capacity of 175MW. Data collection and environmental studies have
been continuing at a number of sites in both countries.
This news release does not constitute an offer to sell or a
solicitation of an offer to sell any securities in the United States.
The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered
or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or
an exemption from such registration is available. Statements in this
news release, other than purely historical information, including
statements relating to the Company's future plans, objectives or
expected results, constitute Forward-looking statements. Such
statements represent management's conclusion based on numerous
assumptions and are subject to all the risks and uncertainties
inherent in the Company's business, including development risks.
Further information concerning such risks is set forth in the
Company's formal disclosure documents filed on SEDAR, including its
MD&A. Consequently, actual results may vary materially from those
described in the Forward-looking statements.
The TSX Venture Exchange has not reviewed, and does not accept
responsibility for the adequacy or accuracy of, this release.
Finavera Renewables Inc.