Message #23 From:
NewsBot Date: December 28, 2007 08:39:48 AM
ThermoEnergy Enters into Definitive Agreement for $12 Million Private Equity Financing
LITTLE ROCK, Ark., Dec. 18 /PRNewswire-FirstCall/ -- ThermoEnergy
Corporation ('ThermoEnergy') (OTC Bulletin Board: TMEN) announced today that
it has entered into a definitive agreement with The Quercus Trust, Los
Angeles, CA ('Quercus') pursuant to which Quercus has committed to make a $12
million equity investment in ThermoEnergy.
In the initial closing under the agreement, on December 18, 2007 Quercus
purchased 6,666,667 Units at a price of $5,000,000. Each unit consists of one
share of Common Stock, and a 5-year Warrant entitling the holder to purchase
1.5 additional shares of Common Stock at an exercise price of $1.50 per share.
Subject to the satisfaction of certain conditions, Quercus is committed to
make an additional investment of between $7,000,000 and $8,500,000 in
ThermoEnergy. In that follow-on investment, Quercus has agreed to purchase an
additional 9,333,334 Units at a price range from $0.91072 to $0.75 per Unit
depending on the date on which ThermoEnergy satisfies the closing conditions.
The Units to be purchased at the follow-on closing will consist of one share
of Common Stock and a 5-year Warrant to purchase one share of Common Sock at
an exercise price of $1.50 per share.
Merriman Curhan Ford and Co. (Amex: MEM) acted as sole placement agent in
the transaction. Nixon Peabody LP, Boston, MA (www.nixonpeabody.com) acted as
legal advisor to ThermoEnergy.
Dennis Cossey, ThermoEnergy's Chairman and CEO stated, 'This private
equity commitment enables ThermoEnergy to expedite its immediate and long-term
growth strategies. We are exceptionally pleased to have The Quercus Trust,
which is well known for its commitment to environmental issues, become one of
our largest shareholders.' The proceeds from the agreement will be used to
develop the planned Ammonia Recovery Process ('ARP') facility at the 26th Ward
Wastewater Treatment Plant in New York City, repay certain debt obligations,
provide working capital for additional ARP facilities and the CASTion
subsidiary, as well as general corporate purposes.
About ThermoEnergy
Founded in 1988, ThermoEnergy is an integrated technologies company
engaged in the worldwide commercialization of patented and/or proprietary
municipal and industrial wastewater treatment and power generation
technologies. The economic and environmental matrix of the Company's
technologies represents a significant advancement in these key infrastructure
industries. The Company currently has offices in Little Rock, AR, Hudson, MA,
Worcester, MA and New York, NY. CASTion, a subsidiary of ThermoEnergy
Corporation, is a 25-year old award winning company that provides customized
turnkey systems for industrial wastewater treatment. Additional information
on the Company and its technologies can be found on its websites at
www.thermoenergy.com and www.castion.com.
This press release may include statements that constitutes 'forward
looking' statements, usually containing the word 'believe', 'estimate',
'project', 'expect' or similar expressions. Forward looking statements
inherently involve risks and uncertainties that could cause actual results to
differ materially from the forward looking statements. Factors that would
cause or contribute to such differences include, but are not limited to,
continued acceptance of the company's products and services in the
marketplace, competitive factors, changes in regulatory environments and other
risks detailed in the company's periodic report filings with the securities
and exchange commission. By making these forward looking statements, the
company undertakes no obligation to update these statements for revisions or
changes.
