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March 9, 2010
TRADING SYMBOLS:
In the United States: NYSE Amex: HTM and
in Canada: TSX: GTH
U.S. GEOTHERMAL
ANNOUNCES $8.6 MILLION
PRIVATE
PLACEMENT FINANCING
Boise, Idaho - March 9, 2010 (NYSE Amex: HTM, TSX: GTH) U.S. Geothermal Inc. (the
"Company") announced today that it has entered into a securities
purchase agreement with several institutional investors, pursuant to which
the Company has agreed to issue 8,209,519 shares of Common Stock at a price
of $1.05 per share for gross proceeds of approximately $8.6 million (the
"Private Placement"). Pursuant to the terms of the Private
Placement, each Investor will also be issued a common share purchase
warrant (a "Warrant") exercisable for 50% of the number of shares
of Common Stock purchased by the investor. Each Warrant is exercisable at
$1.25 per share for a period of five years beginning six months after the
closing of the private placement. After deducting for fees and expenses,
the net proceeds are anticipated to total approximately $8.0 million. The
net proceeds of the offering will be used by the Company to further develop
its Neal Hot Springs geothermal project and for general working capital
purposes. Initiating a planned capital project for Raft River Unit I and a
well drilling program for a planned future expansion at San Emidio may be
subject to completion of future financing.
The Private Placement is subject to certain conditions
including, but not limited to, the approval of the NYSE Amex and the
Toronto Stock Exchange and is anticipated to close on or about March 12,
2010. The
Company will be required to file a resale registration statement within 30
days of the closing date and will use its best efforts to cause the
registration statement to be declared effective within 120 days of the
closing date. The Private Placement pursuant to the securities purchase
agreement is being made upon an exemption from the registration requirements
of the Securities Act of 1933, as amended, pursuant to Section 4(2)
thereof.
The
securities described herein have not been registered under the U.S.
Securities Act of l933, as amended, or any state securities laws and may
not be offered or sold in the United States or to U.S. persons unless an
exemption from registration is available. This news release shall not
constitute an offer to sell or the solicitation of an offer to buy, nor
shall there be any sale of these securities in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such state
or jurisdiction.
About U.S. Geothermal:
U.S. Geothermal is a renewable energy
development company that is operating geothermal power projects at Raft
River, Idaho and San Emidio, Nevada and completed testing a new well as
part of its exploration activities at Neal Hot Springs in eastern Oregon.
Please visit our Website at: www.usgeothermal.com
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Saf Dhillon - Investor Relations
U.S. Geothermal Inc.
Tel: 866-687-7059
Fax: 208-424-1030
saf@usgeothermal.com
The information provided
in this news release may contain forward-looking statements within the
definition of the Safe Harbor provisions of the US Private Securities
Litigation Reform Act of 1995, including statements regarding the offering,
anticipated use of proceeds and availability of future financing. These
statements are based on U.S. Geothermal Inc.'s current expectations and
beliefs and are subject to a number of risks and uncertainties that can
cause actual results to differ materially from those described. Important
factors that could cause actual results to differ materially from U.S.
Geothermal's expectations include the uncertainties involving the
completion of the offering and the need for additional financing to explore
and develop projects and availability of financing in the capital markets .
Readers are cautioned to review the risk factors identified by the company
in its filings with Canadian and US securities agencies, including U.S.
Geothermal's annual report on Form 10-K for the year ended March 31. 2009.
Forward-looking statements are based on management's expectations, beliefs
and opinions on the date the statements are made. U.S. Geothermal Inc.
assumes no obligation to update forward-looking statements if management's
expectations, beliefs, or opinions, or other factors, should change.
The NYSE Amex and the Toronto Stock
Exchange do not accept responsibility for the adequacy of this release.
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