The Ontario Teachers’ Pension Plan has agreed to invest $35 million in Railpower Technologies Corp.
“We chose to invest in Railpower because of its market potential,” says Brian Gibson, senior cice-president, public equities at Teachers’. “We expect that increasingly stringent environmental regulations in North America and globally will open up new markets for Railpower’s current and future emission-reducing products and technologies.”
The private placement consists of the issuance of a convertible debenture which will have a maturity date of five years from its date of issuance and will have an interest rate of 5% per annum, payable semi-annually in either cash or common shares, at the discretion of Railpower.
The initial principal amount of the debenture will be convertible, at the election of the holder, in whole or in part, into either common shares or a new class of convertible restricted voting shares to be created by the Corporation, or any combination thereof, at a conversion ratio of $0.30 per share, representing up to 116,666,667 shares. The new class of convertible restricted voting shares will be convertible into common shares, at the option of the holder, on a one-for-one, share for share basis(subject to customary adjustments, including for subdivision or consolidation).
Railpower develops, markets, produces and sells specialized, patented, environment-friendly technology systems for the transportation and related industries.
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