Vancouver, British Columbia-based Finavera Renewables Inc. has closed a C$600,000 non-brokered private placement and a C$1.5 million development loan that was previously announced in March. The private placement consists of 10 million shares at a price of C$0.06 per share. Shares issued pursuant to this private placement are subject to a four-month hold.
The C$1.5 million development loan has a one-year term with an annual interest rate of 12% and is secured against a minority interest in the company's Cloosh Valley wind project until such time as the loan is repaid. A total of 7 million share purchase warrants have been issued to the lender with each warrant exercisable at C$0.10 for 12 months from the date of closing of the loan.
Proceeds of the placement and loan will be used to provide the required performance security to BC Hydro for the four wind projects awarded electricity purchase agreements in the BC Hydro clean power call. Finavera was awarded four agreements totaling 293 MW of generating capacity.
SOURCE: Finavera Renewables Inc. Â