Raser Technologies, Inc., a geothermal power development company, completed the private placement of shares of its convertible preferred stock, for gross proceeds of $5 million. The company will raise an additional $14 million in certain investment rights, to bring the total financing to $19 million. The shares issued in the offering will be subscribed by Fletcher International, Ltd., an affiliate of Fletcher Asset Management, Inc. The financing is part of a strategic agreement between Raser and Fletcher.

The preferred shares are convertible into Raser common stock at a price of $5 per share and can be redeemed at a price of not less than $1.22 per share of common stock, subject to adjustment under certain circumstances, after the earlier of six months after the closing date or the date on which the company’s common stock trades above $2 per share. The redemption price represents a 37% premium to the closing price of the company’s stock on February 3, 2010.

Raser intends to use the proceeds from the offering to further its geothermal development program and for general corporate purposes.

The company will raise the additional $14 million in two tranches, including $7 million, between 6 and 12 months after closing and remaining $7 million, between 12 and 36 months after closing, subject certain conditions.

Capstone Investments acted as underwriter for the offering.

* Indicates Mandatory