Run of River Power Inc.

Run of River Power Inc.

March 15, 2007 08:00 ET

Run of River Announces Fully Subscribed $10 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 15, 2007) -


Run of River Power Inc. (TSX VENTURE:ROR) ("Run of River") is pleased to announce that it has signed an engagement letter with Jacob & Company Securities Inc. acting as agent (the "Agent") pursuant to which the Agent has guaranteed to place 25,000,000 units of Run of River at a price of $0.40 per unit for gross proceeds of $10,000,000, subject to final documentation acceptable to the Agent and the subscribers.

Pursuant to the terms of the engagement letter, the Agent will receive a commission of 8% of the gross proceeds of the Offering and broker warrants exercisable for a number of units equal to 8% of the units sold. The broker warrants to be issued to the Agent shall have the same terms and conditions as the units placed in the Offering.

Each unit consists of one common share and one common share purchase warrant exercisable at a price of $0.60 to purchase one additional common share of Run of River for a period of 24 months from the date of closing of the placement.

The offering may be subject to Run of River receiving the consent of shareholders to a possible change in control, either in writing by 51% of the registered or unregistered shareholders holding shares through depositories, or at a duly convened meeting of shareholders, if any one subscriber purchases more than 20% of the shares of Run of River that will be issued and outstanding at closing. The placement is also subject to TSX Venture Exchange approval.

The proceeds of the offering will be used to further the development of the Company's Pitt River and Mamquam renewal energy hydroelectric projects.

"We are pleased to be assisted by Jacob & Company Securities because of their breadth of knowledge and extensive expertise in the renewable resource sector, as we continue to grow Run of River's brand and market share," said Jako Krushnisky, President and CEO of Run of River.

About Jacob & Company Securities

Jacob & Company Securities is an independent investment bank with a leading underwriting and advisory business focused in the renewable power and infrastructure sectors. The firm's CEO, Sasha Jacob, brings more than a decade of experience in the power and infrastructure sectors, including founding and leading the power and infrastructure practice at a leading Canadian investment bank. Mr. Jacob has focused on investment banking in the renewable power and infrastructure sectors for over 5 years. In the previous two years Mr. Jacob managed and structured over 20 transactions in the renewable power sector and has participated in renewable financings valued at more than $1 billion.

About Run of River Power Inc.

Run of River Power is a Vancouver based developer and operator of clean, green, renewable power. The Corporation currently sells power to BC Hydro on a long-term 20 year contract from its operating hydroelectric generation station at Brandywine Creek, near Whistler, BC.

The Corporation is currently developing renewable hydroelectric energy projects in two clusters that it owns the rights to develop, located near Vancouver, BC. The 10 development projects, totaling 193 MW of capacity, will generate over 670 GWh of renewable power annually, when completed, which could provide in excess of $60 Million per year in gross revenue to Run of River.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this Release.

Contact Information

  • Run of River Power Inc.
    Jako Krushnisky
    President and CEO
    (604) 946-9232
    Run of River Power Inc.
    David Speck
    Investor Relations
    (416) 801-8369