This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here


VANCOUVER, March 7 /PRNewswire-FirstCall/ - Magma Energy Corp (TSX:MXY) and Plutonic Power Corporation (TSX:PCC) today announced that they have entered into an arrangement agreement (the "Arrangement Agreement") to merge and create Alterra Power Corp. ("Alterra"), a leading renewable power producer, with a post-deal market capitalization of approximately $575 million.

Under the terms of the Arrangement Agreement, each Plutonic shareholder will receive 2.38 shares of Magma for each Plutonic share held, and Magma will change its name to Alterra. The exchange ratio represents a premium to Plutonic shareholders of 32% over Plutonic's 20 day weighted average share price on the Toronto Stock Exchange. At the conclusion of the merger there will be 470 million shares of Alterra issued and outstanding and 487 million shares on a fully diluted basis.

Merged Entity Highlights

    -  Solid base of producing assets in three key renewable energy sectors:
       Geothermal, hydro and wind. Six operating plants in three locations:
       two geothermal plants in Iceland and one in Nevada; two hydro plants
       in British Columbia; one wind farm in British Columbia; and an option
       on one solar project in Ontario.

    -  Increased production capacity: 2011 production capacity of 198
       megawatts generating 1,340 gigawatt hours/year from Magma's geothermal
       assets and 168 megawatts generating 460 gigawatt hours/year from
       Plutonic's hydro and wind assets.

    -  Significant immediate increase in cash flow generation to both

    -  Strong growth platform in geothermal, wind and hydro sectors:
       Near-term growth in Iceland and Nevada geothermal production;
       near-term growth prospects in British Columbia hydro and wind assets
       and Ontario solar assets; significant large long-term growth prospects
       in Chile, Peru, Nevada and Iceland geothermal assets and British
       Columbia hydro assets.

    -  Shared commitment to social responsibility: Both Magma and Plutonic
       recognize a commitment to social responsibility and sustainable
       development of renewable energy projects. The shared values and
       experience in this area will be a competitive advantage in creating
       long term value for shareholders and the communities in which Alterra

    -  Complementary management teams: Magma's and Plutonic's highly regarded
       management teams blend renewable energy exploration, development,
       financing and operations skill sets.

    -  Significant administration synergies: Estimated at $2.2 million per

    -  Financial support: Magma to provide short term financial support to
       Plutonic by subscribing for a $10 million convertible debenture.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $92.34 -0.97%
FB $119.14 1.10%
GOOG $708.09 0.95%
TSLA $215.14 1.70%
YHOO $37.04 0.27%


Chart of I:DJI
DOW 17,679.20 +18.49 0.10%
S&P 500 2,044.85 -5.78 -0.28%
NASDAQ 4,695.1520 -21.9420 -0.47%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs