US Ocean Thermal Energy offers USD 3m of promissory notes to Bahamian investors

Jun 7, 2012 - US-based Ocean Thermal Energy Corp (OTEC) is offering USD 3 million (EUR 2.4m) of series A promissory notes to be issued by its Bahamian unit in a private placement to Bahamian investors, Bahamian news source Tribune Business reported yesterday.

The company is offering up to 60 promissory notes of its unit Ocean Thermal Energy Bahamas. The investors will receive one warrant for each note held. The warrants can be converted into a collective 20% stake worth USD 12 million in the Bahamian subsidiary in up to 10 years, OTEC said.

Ocean Thermal Energy Bahamas will redeem the notes by the revenues generated from its USD-102.3-million Baha Mar Seawater District Cooling project.

Fernando Gonzales, OTEC's vice-president of finance, has told Tribune Business that talks with potential Bahamian investors were going well.

Ocean Thermal Energy Bahamas will own the Baha Mar SDC, and two 10-MW ocean thermal cooling plants currently being negotiated with government-owned utility Bahamas Electricity Corp, OTEC added.

(USD 1 = EUR 0.792)

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