Canadian Hydro Developers, Inc.
TSX : KHD

Canadian Hydro Developers, Inc.

January 08, 2008 19:11 ET

Canadian Hydro Closes Sale of Common Shares on Exercise of Underwriters' Over-Allotment Option

CALGARY, ALBERTA--(Marketwire - Jan. 8, 2008) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. NEWSWIRES

Canadian Hydro Developers, Inc. (TSX:KHD) ("Canadian Hydro" or the "Company") announced today that it has closed the sale of 880,000 common shares (the "Common Shares") at an issue price of $6.25 per Common Share for aggregate gross proceeds of $5,500,000, raising the total gross proceeds of the previously announced equity offering that closed on December 14, 2007 to $60,500,000. The equity offering was conducted on a bought deal basis by a syndicate of Canadian underwriters led by Scotia Capital Inc. (as sole bookrunner) and FirstEnergy Capital Corp., and including Canaccord Capital Corporation, RBC Dominion Securities Inc., Cormark Securities Inc., GMP Securities L.P., National Bank Financial Inc. and TD Securities Inc. (collectively, the "Underwriters"). The Common Shares were issued pursuant to the exercise by the Underwriters of the over-allotment option (the "Over-Allotment Option") provided for in the underwriting agreement among the Company and the Underwriters dated November 27, 2007.

The net proceeds from the exercise of the Over-Allotment Option will be used by the Company for general working capital purposes.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Common Shares in any jurisdiction. The Common Shares offered will not be and have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to a U.S. person, absent registration, or an applicable exemption therefrom.

Canadian Hydro is committed to Building a Sustainable Future®. The Company is a developer, owner, and operator of 20 power generation facilities totalling net 364 MW of capacity in operation and has an additional 403 MW nearing construction. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of British Columbia, Alberta, Ontario and Quebec. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogo(M) Program.

Common shares outstanding: 143,221,223

Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this news release contains forward-looking information and statements pertaining to the following: expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release.

The forward-looking information and statements contained in this news release reflect several material factors, expectations and assumptions including, without limitation: (i) commodity prices, foreign currency exchange rates and interest rates; (ii) supply and demand for electricity; (iii) expectations regarding the Company's ability to raise capital and to increase its power generation capability through acquisitions and construction; (iv) schedules and timing of certain projects and the Company's strategy for growth; (v) the Company's future operating and financial results; (vi) treatment under governmental regulatory regimes and tax, environmental and other laws; (vii) the timing of the delivery of power generation assets under construction contracts; and (viii) the expected long-term average generation of any assets acquired.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.

The Company cautions that the foregoing list of assumptions, risks and uncertainties is not exhaustive. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

The Toronto Stock Exchange has neither reviewed nor approved this press release.

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