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RailPower closes $2.4 million private placement


On July 3, RailPower Technologies Corp. closed a private placement that, due to excess demand, was increased to $2.37 million, up from the $2.22 million originally announced.

Developer of the Green Goat™ and Green Kid™ hybrid locomotives, RailPower issued 1.6 million units at $1.48 each. Each unit comprises one common share and one common share purchase warrant; each warrant entitles holders to acquire an additional common share for $1.67 per share for 18 months from the closing date. The common shares and warrants are subject to a four-month "hold" period, which expires Nov. 4.

About $1.63 million of the offering was raised through First Capital Management Ltd; James Richardson & Sons Ltd. subsidiary Richardson Ventures Inc. provided the remaining $740,000.

On June 27, RailPower announced it would begin taking orders for the Green Goat locomotive. Union Pacific Railroad recently completed a year-plus test of the 2,000-horsepower unit. Based on UP test feedback, RailPower designed and built a pre-production 1,000-horsepower Green Kid locomotive targeted at industrial switching yards. Southern Rail of British Columbia Ltd. is testing the Green Kid in New Westminster, B.C.

RailPower plans to soon produce two more Green Kids and two pre-production Green Goats.

Both the Green Goat and Green Kid feature a small diesel generator and long-life battery bank designed to reduce locomotive emissions between 80 percent and 90 percent, and cut fuel consumption about 50 percent compared with conventional diesel-engine locomotives, RailPower said. In mid-July, Pacific Harbor Line plans to begin a 30-day Green Goat test.

Contact Progressive Railroading editorial staff.

More News from 7/7/2003