Reservoir Capital Corp.
TSX VENTURE : REO
FRANKFURT : ROC
BERLIN : ROC

Reservoir Capital Corp.

October 15, 2010 07:00 ET

Reservoir to Raise $1.98 Million by Way of Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 15, 2010) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES NOR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA

Reservoir Capital Corp. (TSX VENTURE:REO)(FRANKFURT:ROC)(BERLIN:ROC) ("Reservoir" or the "Company") is pleased to report that the Company is arranging a non-brokered private placement financing of $1,980,000 by the issuance of 3,300,000 units at $0.60 per unit (a "Unit"). Each Unit shall comprise one common share (a "Share") and one non-transferable, common share purchase warrant (a "Warrant") valid for 2 years. Each Warrant will entitle the holder thereof to acquire an additional Share at a price of $0.80 per share during the first year and $0.90 during the second year from the closing of the private placement. If after the expiry of all resale restrictions, the closing price of the Shares on the TSX Venture Exchange is $1.20 or greater for a period of 20 consecutive trading days, the Company may at its election provide notice of an earlier expiry of the Warrants, in which case the Warrants shall expire 21 trading days after giving such notice.

The Company has agreed to pay a finder's fee in respect of subscriptions from investors introduced by a finder. The fee will be payable in that number of Units equal to 6% of the number of Units issued pursuant to such subscriptions. In addition, the finder will be issued that number of finder warrants equal to 5% of such Units with each finder warrant being exercisable for two years at a price of $0.60 per share.

There can be no assurance that the private placement will be completed as proposed or at all, and it is subject to all applicable regulatory approvals. The proceeds of the offering will be used by Reservoir to support the Feasibility Studies on the Brodarevo Projects, new business efforts in the renewable energy sector and for general corporate purposes.

About Reservoir

Reservoir is a renewable energy company, engaged in development of a 58.4 MW hydroelectric project at Brodarevo in southwest Serbia. Reservoir holds four geothermal exploration licenses in Serbia and has applied for a hydroelectric licenses to develop a further 17.75 MW on the Cehotina river in Bosnia and a 32 MW project from an existing dam at Vrutci in Serbia. The Company also holds a portfolio of precious and base metal exploration properties in Serbia, which it is seeking to divest, two of which are joint ventured with Freeport McMoRan Exploration Corp. Reservoir's common shares trade on the TSX Venture Exchange (symbol "REO") and on the Frankfurt and Berlin Exchanges (symbol "ROC").

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.

Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Reservoir Capital Corp.
    Miljana Vidovic
    President
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Miles Thompson
    Chairman
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Kim Casswell
    Corporate Secretary
    +1 (604) 662-8448
    or
    Reservoir Capital Corp.
    Julia Maxwell
    Investor Relations - Vancouver
    +1 (604) 662-8448
    +1 (604) 688-1157 (FAX)
    or
    Reservoir Capital Corp.
    Chris MacIntyre
    Investor Relations - Toronto
    +1 (416) 346-7660
    info@reservoircapital.ca
    www.reservoircapital.ca