Calgary, Canada – September 10, 2001 (TSE: KHD): Canadian Hydro Developers, Inc. is pleased to announce that it has closed a private placement with ARC Canadian Energy Venture Fund 2 ("ARC") and Shaw Ventures Ltd. ("Shaw") for proceeds of $9.9 million. The financing consists of 4,400,000 units priced at $2.25 per unit, each unit consisting of one common share and one-half of a common share purchase warrant. The common share purchase warrants are exercisable into common shares of the Corporation at a price of $2.35 per share and expire on September 10, 2004. The proceeds from this financing will be used to fund a portion of the Corporation’s 25 MW Grande Prairie Combined Heat & Energy Project and other projects currently under construction.
Under the private placement, ARC acquired 2,200,000 common shares and 1,100,000 warrants, and therefore now exercises control or direction over an aggregate of 7,247,400 common shares (or securities exercisable into common shares, including common share purchase warrants) of Canadian Hydro, representing 11.2% of the current outstanding Canadian Hydro common shares, or 16% assuming the exercise of the common share purchase warrants. ARC is an investment fund that is managed by ARC Equity Management (Fund 2) Ltd., part of the ARC Financial group of companies (4300, 400 - 3rd Avenue S.W., Calgary, Alberta). Although ARC may make further purchases of common shares of Canadian Hydro on The Toronto Stock Exchange or through private purchases, such purchases will be made for investment purposes.
Shaw also acquired 2,200,000 common shares and 1,100,000 warrants under the private placement, and therefore now exercises control or direction over an aggregate of 7,696,580 common shares (or securities exercisable into common shares, including common share purchase warrants) of Canadian Hydro, representing 11.6% of the current outstanding Canadian Hydro common shares, or 16.8% assuming the exercise of the common share purchase warrants. Shaw is the investment division of Shaw Communications Inc. (900, 630 - 3rd Avenue S.W., Calgary, Alberta). Although Shaw may make further purchases of common shares of Canadian Hydro on The Toronto Stock Exchange or through private purchases, such purchases will be made for investment purposes.
"The equity raised today is an important part of Canadian Hydro’s ongoing growth plans. ARC and Shaw continue to be strong supporters of the Corporation", said John Keating, CEO of Canadian Hydro.
Canadian Hydro is committed to the concept of low-impact power generation. Through its wind, run-of-river hydro, and gas-fired facilities, Canadian Hydro is demonstrating that commitment to the benefit of the environment and its shareholders. |
