THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES
Vancouver, British Columbia, October 24, 2006 - PLUTONIC POWER CORPORATION (TSX-V:PCC)
announces that it has entered into an agreement with Sprott Securities
Inc. and Orion Securities Inc. as co-lead underwriters on behalf of a
syndicate of underwriters, pursuant to which the underwriters will
purchase (or find substituted purchasers for) 8,000,000 common shares of
the Company at $2.00 per share for total gross proceeds of $16,000,000.
The Company has also granted the underwriters an option exercisable up
until closing to purchase up to an additional 2,000,000 common shares
for additional gross proceeds of $4,000,000. Closing of the sale of the
common shares is scheduled for November 9, 2006 and subject to normal
regulatory approvals. The underwriters will be entitled to receive a
6.5% commission on gross cash proceeds. In addition, the underwriters
will receive compensation warrants equal to 5% of the number of shares
sold under the offering with each compensation warrant entitling the
holder to purchase an additional common share of the Company at $2.00
per share for a period of 2 years.
Plutonic Power is an emerging renewable energy producer in British
Columbia. Its proposed 22 development projects have a design capacity of
nearly 1,000 MW with the potential to generate approximately 3,300 GWh
per annum of green energy - enough energy to meet the annual energy
needs of over 300,000 homes. Included in the 22 projects is the creation
of the Green Power Corridor and a series of non-storage hydroelectric
projects in southwestern BC which hold the potential to bring British
Columbia to the forefront of green energy generation in North America.
The completion of the Green Power Corridor would create approximately
3,000 person-years of employment.
In July 2006, Plutonic Power was awarded Energy Purchase Agreements from
BC Hydro for its most advanced projects: East Toba River, Montrose
Creek and Rainy River, which combined, total 211 MW of capacity.
Plutonic has granted a Canadian affiliate of GE Energy Financial
Services the exclusive right to provide $100 million of project equity
as well as lead a $400 million debt financing for construction of the
East Toba/Montrose Creek project.
Plutonic is committed to working with First Nations, stakeholder groups
and local communities in the development, future construction and
operation of its run of river projects.
The common shares of the Company trade on the TSX Venture Exchange under the symbol "PCC".
On behalf of the Board of Directors,
PLUTONIC POWER CORPORATION
Donald McInnes, President
For additional information please contact:
Office: 604-669-4999 ext 1034
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release Caution Regarding Forward-Looking
Statements - This news release contains certain forward-looking
statements, including statements regarding the business and anticipated
financial performance of the Company. These statements are subject to a
number of risks and uncertainties. Actual results may differ materially
from results contemplated by the forward-looking statements. When
relying on forward-looking statements to make decisions, investors and
others should carefully consider the foregoing factors and other
uncertainties and should not place undue reliance on such
forward-looking statements. The Company does not undertake to update any
forward-looking statements, oral or written, made by itself or on its
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR
DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED
HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS,
AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS
UNLESS REGISTERED OR EXEMPT THEREFROM.