SOURCE: Ram Power, Corp. (US)

Ram Power, Corp. (US)

December 31, 2014 15:30 ET

Ram Power Announces Strategic Process and Corporate Update

RENO, NV--(Marketwired - December 31, 2014) - Ram Power, Corp. (TSX: RPG) ("Ram Power" or the "Company"), a renewable energy company focused on the development, production and sale of electricity from geothermal energy, announced today the following Strategic Process and General Corporate updates.

STRATEGIC PROCESS

As previously disclosed, the Board of Directors of the Company formed a Mergers and Acquisitions Committee (the "Committee") to explore and evaluate strategic alternatives to enhance shareholder value. The Committee was tasked with exploring, among other things, opportunities to increase operational efficiencies, strategic partnerships, asset sale opportunities and asset purchase opportunities. The Company has received a number of proposals from interested third parties and continues to work with its stakeholders and potential investors to bring a transaction to conclusion. 

DECEMBER DEBENTURE PAYMENT

Pursuant to the terms of the debenture indenture between Ram Power and Equity Financial Trust Company (the "Trustee"), beneficial holders of 66 2/3% of the currently outstanding principal amount of the debentures have authorized the addition of Cdn$2,161,338 (the "Debenture Interest Payment Amount") to the principal amount of the outstanding debentures in lieu of making a semi-annual interest payment on the debentures. As a result, the Debenture Interest Payment Amount shall accrue interest as principal for the remaining term of the debentures and shall be due and payable on the maturity date or as otherwise provided under the debenture indenture. The Company is working with the relevant beneficial holders to receive formally signed resolutions from the registered holders of debentures to reflect the instructions of such beneficial holders.

PHASE I and PHASE II SUBORDINATED DEBT FACILITIES

The Company has also not made the aggregate US$1,277,774 principal and interest payments required to be made on September 15 and December 15, 2014 in respect of its Phase I and Phase II subordinated debt facilities. As the Company has previously disclosed, we continue to work alongside our Phase I and Phase II Senior and Subordinated Lenders, and both parties are interested in bringing to close a transaction in early 2015. As a result of the fact that the subordinated debt payments were not made, the amounts outstanding under these agreements have been classified by the Company as short-term liabilities.

About Ram Power, Corp.

Ram Power is a renewable energy company engaged in the business of acquiring, exploring, developing, and operating geothermal properties, and has interests in geothermal projects in the United States, Canada, and Latin America. 

Cautionary Statements 

This press release contains "forward-looking information" within the meaning of applicable securities laws including information regarding the business of Ram Power. Readers are cautioned not to place undue reliance on forward-looking information. Actual results and developments may differ materially from those contemplated by this information. The statements in this press release are made as of the date of this release. Ram Power undertakes no obligation to update forward-looking information, other than as required by law, or comment on analyses, expectations or statements made by third parties in respect of Ram Power, or its financial or operating results or its securities.

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