Reservoir Capital Corp. said it intends to undertake a private placement to raise CAD 1 million (EUR 680,000) through the issue of two million units at EUR 0.34 each. The Canadian renewable energy company is engaged in the development of a 59.1 MW hydroelectric project at Brodarevo on the River Lim in southern Serbia. On October 8 it said it signed a letter of intent with Milan-based utility A2A SpA to initiate exclusive negotiations and due diligence on the project.
The company seeks a partner to support the development and the construction of the Brodarevo HPP. Reservoir said it entered into more detailed negotiations with A2A, which invested EUR 436 million in 2009 to acquire 43.7% of Montenegro’s utility EPCG, operating various hydroelectric projects that lie in close proximity to Brodarevo.
In the private placement, each unit shall comprise of one common share in the capital of Reservoir and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share at a price of 375 euro cents per share for a period of five years.
