Raser Closes $12.5M Round; Focus on Geothermal

2 April 2007

Raser Technologies has closed a private equity placement in which it raised $12.5 million in gross proceeds from six investors. Raser will use the net proceeds to accelerate its geothermal drilling program in addition to other purposes.

Raser is a technology licensing and development company operating in two business segments. The Transportation and Industrial Technology segment focuses on using Raser’s Symetron technology to improve the efficiency and power density of electric motors and other applications. (Earlier post.)  Raser’s Power Systems segment is seeking to develop new geothermal electric power plants and bottom-cycling operations, incorporating licensed heat transfer technology as well as Symetron technology.

The transaction involved the sale of 2,693,552 shares of restricted common stock at a fixed price of $4.65 per share. The lead investor was Heartland Value Fund, managed by Heartland Advisors, Inc. (HAI). HAI is a Milwaukee-based investment manager with $3.2 billion of assets under management as of 31 December 2006.