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Ram Power Announces a Corporate Reorganization and Strategic Initiatives to Enhance Long-Term Cash Flow and Shareholder Value

Ram Power Announces a Corporate Reorganization and Strategic Initiatives to 
Enhance Long-Term Cash Flow and Shareholder Value 
RENO, NV -- (Marketwire) -- 01/28/13 --  Ram Power, Corp. (TSX: RPG)
("Ram Power" or the "Company"), a renewable energy company focused on
the development, production and sale of electricity from geothermal
energy, announced a corporate reorganization and strategic
initiatives to enhance long-term cash flow and shareholder value. 
In January 2013, the Board of Directors (the "Board") requested the
Special Committee composed of the independent directors to conduct an
extensive review of its current corporate structure with a focus on
maximizing long-term cash flow. The Board, based on the
recommendations of the Special Committee, approved a series of
actions as follows: 
Corporate Reorganization:
 The Company will conduct a reorganization
of its corporate office in Reno, Nevada, reducing both expenses and
staffing levels to better align the organization to focus primarily
on its Nicaragua operations including the continuing operation of the
San Jacinto resource, the development of a binary unit at San
Jacinto, and the exploitation of its Casita resource. The corporate
reorganization will take place during the current quarter. The
reorganization is expected to save approximately $4 million a year
annually in corporate administrative cash expense or approximately
50% of the Company's current forecast for 2013 and 2014. After
severance and other costs, the Company expects that the net impact of
the reorganization in 2013 will be a savings of approximately $3
million. 
In addition to the reduction in general staff at the Company's head
office, Acting CFO Selby "Bud" Little's contract service agreement
with the Company will not be renewed following its expiration on
March 31, 2013 and current Chief Executive Officer and Director
Shuman Moore will resign from the Company and the Board effective
February 15, 2013. Antony Mitchell will continue as Executive
Chairman and will remain the senior executive of the company.
Further, Jose Antonio Rodriguez, Vice President, Operations and Chief
Operating Officer of Latin America, who has played a key role in the
San Jacinto operations over the past 24 months, will assume a more 
active role in establishing the strategic focus for our future
development efforts in Nicaragua. Mr. Rodriguez has 18 years of
experience in a number of senior management positions focused in
developing and operating geothermal plants in Central America, and
the Company will be utilizing this experience to further enhance the
operations and profitability of our Nicaragua assets. 
Antony Mitchell, Ram Power's Executive Chairman, stated, "Shuman
Moore came to Ram Power at a very challenging time. His management
and international business skills, geothermal knowledge and project
execution experience were exactly what was needed to get the
Company's flagship Nicaraguan project, consisting of two 36 MW units,
built and in service on time and on budget. With all his objectives
accomplished, and in alignment with the Company's revised corporate
strategy, Mr. Moore will be returning to his previous energy
consulting business in mid-February. We wish Shuman every success in
his future endeavors." 
Strategic Initiatives: 


 
--  Geysers Project - The Company's Special Committee, with its strategic
    advisors, has been evaluating various strategic directions for the 26
    MW (net) Geysers Project over the last several months. As a result of
    the analysis, the Company has decided to either joint venture or sell
    the Geysers Project to a third party with the objective of maximizing
    the value to our shareholders and increasing the Company's corporate
    cash reserves. The Company is currently evaluating potential third
    party partners/buyers for the Geysers Project.

 
--  Corporate Credit Facility - The Company through its Special Committee
    has commenced discussions with its investment advisors to initiate
    efforts to re-finance the Company's $50 million Corporate Credit
    Facility (the "Credit Facility"). The primary objectives in our
    re-financing efforts for the Credit Facility are to convert the
    facility into a longer term loan with a significant reduction in the
    Company's annual interest expense.

  
Antony Mitchell, Ram Power's Executive Chairman, stated, "While it is
always challenging to reduce staffing, the Company's goal was not a
given number of job reductions, but rather the elimination of
duplicating efforts in Reno, and at our subsidiary level in
Nicaragua," added Mr. Mitchell. "The Company will become leaner, and
more efficient in its support of the development of projects in
Central America while safeguarding expenses and risks, thereby
delivering long-term value for shareholders." Mr. Mitchell further
commented that the combination of the reduced expenses from the
corporate reorganization and the anticipated cash improvements from
the strategic initiatives will significantly improve the Company's
balance sheet." 
About Ram Power, Corp. 
Ram Power is a renewable energy company based in Reno, Nevada,
engaged in the business of acquiring, exploring, developing, and
operating geothermal properties, and has interests in geothermal
projects in the United States, Canada, and Latin America.  
Cautionary Statement 
This news release contains certain "forward-looking information"
which may include, but is not limited to, statements with respect to
future events or future performance, management's expectations
regarding the Company's growth, results of operations, estimated
future revenues, requirements for additional capital, revenue and
production costs, future demand for and prices of electricity,
business prospects and opportunities. In addition, statements
relating to estimates of recoverable geothermal energy "reserves" or
"resources" or energy generation are forward-looking information, as
they involve implied assessment, based on certain estimates and
assumptions, that the geothermal resources and reserves described can
be profitably produced in the future. Such forward-looking
information reflects management's current beliefs and is based on
information currently available to management. Often, but not always,
forward-looking statements can be identified by the use of words such
as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "predicts", "intends", "targets", "aims",
"anticipates" or "believes" or variations (including negative
variations) of such words and phrases or may be identified by
statements to the effect that certain actions "may", "could",
"should", "would", "might" or "will" be taken, occur or be achieved.
A number of known and unknown risks, uncertainties and other factors
may cause the actual results or performance to materially differ from
any future results or performance expressed or implied by the
forward-looking information. Such factors include, among others,
general business, economic, competitive, political and social
uncertainties; the actual results of current geothermal energy
production, development and/or exploration activities and the
accuracy of probability simulations prepared to predict prospective
geothermal resources; changes in project parameters as plans continue
to be refined; possible variations of production rates; failure of
plant, equipment or processes to operate as anticipated; accidents,
labor disputes and other risks of the geothermal industr
y; political
instability or insurrection or war; labor force availability and
turnover; delays in obtaining governmental approvals or in the
completion of development or construction activities or in the
commencement of operations; as well as those factors discussed in the
section entitled "Risk Factors" in the Company's Annual Information
Form. These factors should be considered carefully and readers of
this news release should not place undue reliance on forward-looking
information. 
Although the forward-looking information contained in this news
release is based upon what management believes to be reasonable
assumptions, there can be no assurance that such forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue reliance on
forward-looking information. Such forward-looking information is made
as of the date of this news release. Other than as required by
applicable securities laws, Ram Power assumes no obligation to update
or revise the information contained in this news release to reflect
new events or circumstances. 
Steven Scott
Director of Investor Relations
Ram Power, Corp.
Phone: 775-398-3711
Email: sscott@ram-power.com
www.ram-power.com 
 
 
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