Ram Power, Corp. (RPG.TO), a renewable energy company focused on
the development, production and sale of electricity from geothermal
energy, announced a corporate reorganization and strategic
initiatives to enhance long-term cash flow and shareholder
In January 2013, the Board of Directors requested the Special
Committee composed of the independent directors to conduct an
extensive review of its current corporate structure with a focus on
maximizing long-term cash flow. The Board, based on the
recommendations of the Special Committee, approved a series of
actions as follows:
The Company will conduct a reorganization of its corporate
office in Reno, Nevada, reducing both expenses and staffing levels
to better align the organization to focus primarily on its
Nicaragua operations including the continuing operation of the San
Jacinto resource, the development of a binary unit at San Jacinto,
and the exploitation of its Casita resource. The corporate
reorganization will take place during the current quarter. The
reorganization is expected to save approximately $4 million a year
annually in corporate administrative cash expense or approximately
50% of the Company's current forecast for 2013 and 2014. After
severance and other costs, the Company expects that the net impact
of the reorganization in 2013 will be a savings of approximately $3
Geysers Project - The Company's Special Committee, with its
strategic advisors, has been evaluating various strategic
directions for the 26 MW (net) Geysers Project over the last
several months. As a result of the analysis, the Company has
decided to either joint venture or sell the Geysers Project to a
third party with the objective of maximizing the value to our
shareholders and increasing the Company's corporate cash reserves.
The Company is currently evaluating potential third party
partners/buyers for the Geysers Project.
Corporate Credit Facility - The Company through its Special
Committee has commenced discussions with its investment advisors to
initiate efforts to re-finance the Company's $50 million Corporate
Credit Facility (the "Credit Facility"). The primary objectives in
our re-financing efforts for the Credit Facility are to convert the
facility into a longer term loan with a significant reduction in
the Company's annual interest expense.
Shares are up half a cent to 23.5 cents at midday. More than 1.8
million shares have been traded.
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