Vancouver, British Columbia-based Western Wind Energy Corp. has engaged Loewen, Ondaatje, McCutcheon Ltd. (the agents) to market – on a best efforts agency basis – a brokered private placement of up to 5.8 million units at C$0.65 per unit, for aggregate gross proceeds of up to approximately C$3.8 million.
The agents have also been granted an agent option to increase the size of the offering by 20%. Each unit will comprise one common share and one-half of a common share purchase warrant of the company, with each whole warrant entitling the holder to purchase one common share of the company at an exercise price of C$1 per share for a period of 24 months following the closing of the offering. Closing is expected to occur around April 25.
The net proceeds from the brokered offering will be used to secure a letter of credit on behalf of the Southern California Edison Co. for the 20-year power purchase agreement for the company's 120 MW Windstar Project. Remaining proceeds will be for development activities on Windstar, the Mesa Re-Power near Palm Springs, Calif., and the Ontario Solar Initiative.
The company will pay the agent a commission of 7% cash and an additional 7% in the form of brokers warrants. The company will also issue by way of non-brokered private placement up to an additional 2.7 million units partially for cash but mostly for direct land acquisitions in the Tehachapi wind resource area.
SOURCE: Western Wind Energy Corp.
