UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange
Act of 1934
Date of Report - September 9, 2011
(Date of earliest event
reported)
US GEOTHERMAL INC.
(Exact Name of
Registrant as Specified in Its Charter)
Delaware | 333-117287 | 84-1472231 |
(State of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification) |
1505 Tyrell Lane, Boise, Idaho 83706
(Address of
principal executive offices) (Zip Code)
208-424-1027
(Registrants Telephone Number,
Including Area Code)
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] | Written Communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off- Balance Sheet Arrangement of a Registrant |
As previously reported on the Form 8-K of U.S. Geothermal Inc. (the Company) filed on August 31, 2011, USG Oregon LLC (USG Oregon), a special purpose entity and 80% subsidiary of U.S. Geothermal Inc. (the Company), completed the first funding drawdown associated with the U.S. Department of Energy (DOE) $96.8 -million loan guarantee (the Loan Guarantee) to construct its planned 23-megawatt-net power plant at Neal Hot Springs in Eastern Oregon (the Project). The U.S. Treasurys Federal Financing Bank, as lender for the Project, issued payments to vendors totaling $2.3 million. This advance accrues interest at a rate of 2.997% per annum and any future advances covered by the Loan Guarantee will carry interest at a rate of 0.375% per annum over the U.S. Treasury bill rate of comparable maturities as of the date of each advance. All advances will be made under the Future Advance Promissory Note (the Note) dated February 23, 2011, which was previously filed as Exhibit 99.4 to the Companys Form 8-K filed on August 31, 2011. The maximum principal amount of the Note is approximately $93.8 million. No advances may be made under the Note after April 10, 2013. Upon the occurrence and continuation of an event of default under the transaction documents, all amounts payable under the Note may be accelerated.
In connection with the Loan Guarantee, the DOE has been granted a security interest in all of the equity interests of USG Oregon, as well as in the assets of USG Oregon, including a mortgage on real property interests relating to the Project site.
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers |
On September 9, 2011, following the Annual Meeting (as defined below), the board of directors (the Board) increased the size of the Board to six directors and appointed Mr. Dennis Gilles to the Board, to fill the vacancy created thereby. Mr. Gilles was appointed to the Compensation and Benefits Committee, and the Nominating and Corporate Governance Committee.
In accordance with the Companys currently effective compensatory policy for directors who are not otherwise remunerated pursuant to an employment agreement, Mr. Gilles will be paid $7,500 each quarter and will be eligible to receive awards under the Companys equity compensation plans. Mr. Gilles will also be reimbursed for out-of-pocket expenses incurred in connection with attending meetings. Effective September 12, 2011, Mr. Gilles was granted an option to purchase 100,000 shares of the Companys common stock at $0.60 per share under the Companys 2009 Stock Incentive Plan. The option expires on September 12, 2016.
Mr. Gilles has 25 years in the power generation business with experience ranging from power plant construction and operations to senior level management. Mr. Gilles spent 23 years with Calpine Corporation at the Geysers geothermal field where he was instrumental in consolidating the majority of the Geysers operations into a single entity. Mr. Gilles was part of the expansion and growth of Calpine Corporation from the very first megawatt to what is now the largest independent power producer in the country. He completed his career with Calpine as the Senior Vice President of Renewable Growth and is now consulting for the energy sector worldwide. Mr. Gilles is a registered professional engineer in California and earned an MBA and a Bachelor of Science degree in Mechanical Engineering.
In response to the Companys increased construction and growth activities and as part of the Companys succession planning, the Board also appointed certain existing officers to new positions in the Company. While Mr. Daniel Kunz will continue serving as Chief Executive Officer, Mr. Douglas Glaspey has been appointed President as described in more detail below. Mr. Kunz will be reducing his role at the Company due to health issues and other personal business interests. It is currently anticipated that Mr. Kunz will reduce his role to 40% or 50% time. The details of Mr. Kunzs ongoing level of involvement with the Company and employment agreement remain under discussion and will be announced when determined.
Mr. Glaspey has been appointed President effective September 9, 2011 and will continue serving as Chief Operating Officer. Mr. Glaspeys age, positions and offices held with the Company, and business experience is set forth in the Companys definitive proxy statement filed on July 25, 2011 and incorporated herein by reference.
Mr. Jonathan Zurkoff has been appointed Treasurer and Executive Vice President effective September 9, 2011. Mr. Zurkoff has extensive experience in arranging debt and equity financing and led the Companys project finance efforts at Neal Hot Springs and San Emidio.
A copy of the Companys press release relating to the foregoing matters is attached to this report as Exhibit 99.1 and incorporated herein by reference.
Item 5.07 | Submission of Matters to a Vote of Security Holders. |
At the annual meeting (the Annual Meeting) of shareholders of the Company held on September 9, 2011, the shareholders of the Company: (1) elected each of the five director nominees set forth below to serve as a director of the Company until the next annual meeting of shareholders and until a successor is elected and qualified; (2) ratified the continued appointment of BehlerMick, P.S. as the Companys independent auditor for the fiscal year ending March 31, 2012; (3) approved, on an advisory basis, the Companys executive compensation; and (4) submitted an advisory vote regarding the timing of future advisory votes on the Companys executive compensation. The final voting results of each of the proposals submitted to a vote of the shareholders of the Company at the Annual Meeting are set forth below.
(1) |
To elect the following five directors, each to serve until the next annual meeting of shareholders and until a successor is elected and qualified: |
Number of Shares | ||||||||||
Voted For | Vote Withheld | Broker Non-Votes | ||||||||
Douglas J. Glaspey | 15,416,557 | 551,416 | 37,662,794 | |||||||
Daniel J. Kunz | 15,543,291 | 424,682 | 37,662,794 | |||||||
Paul A. Larkin | 15,452,456 | 515,517 | 37,662,794 | |||||||
Leland L. Mink | 15,538,927 | 429,046 | 37,662,794 | |||||||
John H. Walker | 15,476,800 | 491,173 | 37,662,794 |
(2) |
To ratify the continued appointment of BehlerMick, P.S. as the Companys independent auditor for the fiscal year ending March 31, 2012: |
|
Number of Shares | ||||||||||
Voted For | Voted Against | Abstain | Broker Non- Votes | |||||||
52,345,487 | 892,014 | 393,266 | |
(3) |
Advisory vote on the Companys executive compensation: |
Number of Shares | ||||||||||
Voted For | Voted Against | Abstain | Broker Non-votes | |||||||
14,461,681 | 1,100,998 | 405,294 | 37,662,794 |
(4) |
Advisory vote on the frequency of future advisory votes on the Companys executive compensation: |
Number of Shares | |||||||||||||
One Year | Two Years | Three Years | Abstain | Broker Non-votes | |||||||||
5,378,916 | 9,823,083 | 408,242 | 357,732 | 37,662,794 |
As a result of the above advisory vote, the Board has determined that the Company will include a shareholder advisory vote on the Companys executive compensation in its proxy materials every two years until the next required vote on the frequency of shareholder votes on the Companys executive compensation.
Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: September 15, 2011 | U.S. Geothermal Inc. | ||
By: | /s/ Kerry D. Hawkley | ||
Kerry D. Hawkley | |||
Chief Financial Officer | |||
Exhibit 99.1
TRADING SYMBOLS: | September12, 2011 |
In the U.S.: NYSE Amex: HTM and in Canada: TSX: GTH |
U.S. GEOTHERMAL ANNOUNCES NEW BOARD
OF
DIRECTOR AND MANAGEMENT CHANGES
BOISE , Idaho, September 12, 2011 ( NYSE Amex: HTM , TSX: GTH) U.S. Geothermal Inc., a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy, today announced the following changes to its director and management team, effective mid September, 2011.
Mr. Dennis Gilles has been appointed to U.S. Geothermal Inc.s board of directors. Mr. Gilles has 25 years in the power generation business with experience ranging from power plant construction and operations to senior level management. Mr. Gilles spent 23 years with Calpine Corporation at the Geysers geothermal field where he was instrumental in consolidating the majority of the Geysers operations into a single entity. Mr. Gilles was part of the expansion and growth of Calpine Corporation from the very first megawatt to what is now the largest independent power producer in the country. He completed his career with Calpine as the Senior Vice President of Renewable Growth and is now consulting for the energy sector worldwide. Mr. Gilles is a registered professional engineer in California and earned an MBA and a Bachelor of Science degree in Mechanical Engineering.
In response to our increased construction and growth activities and as part of our succession planning, Mr. Doug Glaspey has been promoted to President and will remain as Chief Operating Officer. Mr. Daniel Kunz will continue as Chief Executive Officer. Mr. Jonathan Zurkoff has been named Treasurer and Executive Vice President. Mr. Zurkoff has extensive experience in arranging debt and equity and led the project finance efforts at Neal Hot Springs and San Emidio.
Mr. Kunz said, On behalf of the board, we are pleased that Dennis has joined us to provide additional geothermal development experience as we expand our growth projects. I am also happy to announce the promotion of Doug and Jonathan. These highly experienced renewable energy executives will continue to add significant value to our senior executive team.
About US Geothermal:
U.S. Geothermal Inc. is a leading renewable energy development company that is operating geothermal power projects at Raft River, Idaho and San Emidio, Nevada. The Neal Hot Springs project, which is currently under construction, will be the companys third operating power project. The company holds geothermal energy rights to 69,500 acres comprising six advanced stage geothermal development projects. The San Emidio project is currently undergoing construction of a new 9.6 net MW binary cycle power plant.
Please visit our Website at: www.usgeothermal.com
FOR ADDITIONAL INFORMATION PLEASE CONTACT:
Saf Dhillon - Investor Relations
U.S. Geothermal Inc.
Tel: 866-687-7059
Fax: 208-424-1030
saf@usgeothermal.com
The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. These statements are based on U.S. Geothermal Inc.’s current expectations and beliefs and are subject to a number of risks and uncertainties that can cause actual results to differ materially from those described, including but not limited to, the results from the exploration drilling at San Emidio and Neal Hot Springs. Readers are cautioned to review the risk factors identified by the company in its filings with Canadian and US securities agencies. Forward-looking statements are based on management’s expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management’s expectations, beliefs, or opinions, or other factors, should change.
The NYSE Amex and the TSX do not accept responsibility for the adequacy of this release.
Exhibit 99.2