Pristine Power Inc.

December 15, 2009 15:43 ET

Pristine Power Inc. Announces $10.0 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Dec. 15, 2009) -


Pristine Power Inc. (TSX:PPX) ("Pristine" or the "Company"), an independent Canadian developer and operator of electricity and steam generation facilities, today announced that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and including Haywood Securities Inc. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase 4,166,670 units ("Units") of the Company on a bought deal basis, at a price of $2.40 per Unit for aggregate gross proceeds to the Company of $10,000,008. Each Unit will consist of one common share (a "Common Share") and one-half of one common share purchase warrant (each whole purchase warrant, a "Warrant"). Each Warrant will entitle the holder to acquire one Common Share at a price of $3.25 for a period of two (2) years from closing. In addition, the Company has granted the Underwriters an over-allotment option to purchase an additional 625,000 Units at the offering price until the date that is 30 days following the closing of this offering. The Company will file a preliminary short form prospectus in each of the Provinces of Canada, except Quebec, and the offering is scheduled to close on or about January 7, 2010.

The net proceeds of the offering will be used to fund Pristine's development pipeline as well as for general corporate purposes. The offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

"This equity raise establishes the financial foundation to enable us to capitalize on near term development activities," said Mr. Jeffry M. Myers, President and Chief Executive Officer. "In November 2009, Pristine participated in the Ontario Power Authority's Feed-In-Tariff process with applications for four on-shore wind contracts. The total expected aggregate capacity of these projects is approximately 90 MW, and our working interests are between 75% and 85%," continued Mr. Myers "In addition to the Feed-in-Tariff projects, we anticipate that Phase II of the Bioenergy Call in British Columbia will be issued in the first quarter of 2010. Pristine has developed up to four 30 MW projects for bid into the call. We also continue to develop our 600 MW Kleana run-of-river power project which is among 47 projects that are still being considered in the BC Hydro Clean Power Call."

The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from 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.

About Pristine

Pristine (TSX:PPX) is in the business of developing, owning and operating independent power plants that produce and sell electricity and in some cases, sell process steam to industrial users. Pristine capitalizes on opportunities in the independent power market by actively pursuing the development of dependable, cost-effective and environmentally responsible power generation facilities utilizing technology with proven past performance. Pristine pursues a mix of large gas-fired, bioenergy and hydroelectric projects, and smaller replicable waste heat recovery ERG(R) and bioenergy projects. Pristine currently has three projects in operation, and two under contract and in advanced development. Pristine is developing projects in strategic regions of North America. Visit for more information.

Cautionary Statement Regarding Forward-Looking Information

Certain statements in this news release may constitute "forward-looking information" or "forward-looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. When used in this news release, such information uses such words as "estimates", "expects", "plans", "anticipates" and other similar terminology. This information reflects the Company's current expectations regarding future events. Forward-looking information involves significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information. Although the forward-looking information in this news release is based upon what management of the Company believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with this forward-looking information. This forward-looking information is provided as of the date of this news release, and, subject to applicable securities laws, the Company assumes no obligation to update or revise such information to reflect new events or circumstances.

Contact Information