Run of River Power Inc. (TSX-V:ROR) has acquired Prince George's Western Biomass Power Corp., a privately held biomass energy company for roughly $2 million.
The Vancouver company will issue 3.78 million shares to buy Western Biomass in a deal that Run of River expects will enhance shareholder value.
Western Biomass generates energy from trees killed in the mountain pine beetle infestation. It intends to build a series of wood-fired plants, the first of which is expected to be a 50- to 100-megawatt operation located west of Williams Lake.
Western Biomass' need for a financial partner to develop its wood-fired plants led to the deal with Run of River, which has raised more than $30 million in financing in the past two years.
Run of River's share price range during the past week: between $0.46 and $0.57; 52-week high: $0.73; 52-week low: $0.21.