One of the biggest and most powerful investors in the country threw a lifeline to one of the worst-performing stocks yesterday. OntarioTeachers' PensionPlan says it will invest $35-million dollars in Railpower Technologies Corp. Railpower makes locomotive engines that produce significantly lower emissions than traditional trains, but the company has been on the ropes for months. Thanks to operational problems and a high cash burn rate, the stock has dumped about 85% this year and more than 96% from its high. "We chose to invest in Railpower because of its market potential." Brian Gibson, senior vice-president, public equities at Teachers', said in a statement. Railpower will sell Teachers' A-class convertible debentures, which are debt that can be converted into stock. The debentures yield 5% annually and can be converted at 30¢ a share, well above the stock's depressed price of 23¢ as of yesterday's close.
Current Price: TSE:P
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