{"id":132,"date":"2007-04-05T06:42:43","date_gmt":"2007-04-05T13:42:43","guid":{"rendered":"http:\/\/montaraventures.com\/energy\/?p=132"},"modified":"2007-04-05T06:47:13","modified_gmt":"2007-04-05T13:47:13","slug":"raser-up-30-on-private-placement","status":"publish","type":"post","link":"https:\/\/montaraventures.com\/energy\/?p=132","title":{"rendered":"Raser up 30% on private placement"},"content":{"rendered":"<p><a href=\"https:\/\/www.rasertech.com\/\">Raser Technologies<\/a> announced that they&#8217;ve completed a $12.5M private placement to help with drilling expenses. Traders were thrilled by this news causing the stock to climb 30%, though there has been a slight retreat since. What does this mean? In addition to the $5.5M AMP returned to Raser, there is at least $18M of cash available to Raser to funding drilling, which is phenomenally expensive.<br \/>\n<br \/>\nOur unsolicited advice to the Raser team is, if you&#8217;re serious about the geothermal business (and by all indications you are,) consider buying a drill rig. With fully burdened geothermal well costs approaching $1,500\/meter and the scarcity of drill rigs, this could be a solid capital acquisition that permanently reduces drilling costs by as much as 50% over the useful 30 year life of the rig.<br \/>\n<br \/>\nSo what did this extra money cost? The latest <a href=\"https:\/\/yahoo.brand.edgar-online.com\/fetchFilingFrameset.aspx?dcn=0001193125-07-059509&#038;Type=HTML\">SEC filing indicates that Raser has 50.7M common shares outstanding<\/a>. The private placement adds 2.7M shares to that total at a purchase price of $4.65 per share and grants 945,000 of warrants, essentially the right to by future shares, at a strike price of $6.05 per share. The combination of the shares and warrants (assuming they are excercised) will result in just over 7% dilution for shareholders of record at the time of the announcement.<br \/>\n<br \/> <br \/>\nAs stated in prior entries, this is <a href=\"https:\/\/montaraventures.com\/energy\/?cat=9\">the latest in a series of deals of this type<\/a>, which appears to be in vogue for geothermal developers.<br \/>\n<br \/>\n<i>Disclosure: The author holds no shares in Raser Technologies.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Raser Technologies announced that they&#8217;ve completed a $12.5M private placement to help with drilling expenses. Traders were thrilled by this news causing the stock to climb 30%, though there has been a slight retreat since. What does this mean? In addition to the $5.5M AMP returned to Raser, there is at least $18M of cash [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[9,2],"tags":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2gI6x-28","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=\/wp\/v2\/posts\/132"}],"collection":[{"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=132"}],"version-history":[{"count":0,"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=\/wp\/v2\/posts\/132\/revisions"}],"wp:attachment":[{"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/montaraventures.com\/energy\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}