Placement is closed!! Let's rock!CBM Asia closes $3.3-million private placement
2009-10-06 09:33 ET - News Release
Mr. Alan Charuk reports
CBM ASIA RAISES CDN$3.3 MILLION FROM OVERSUBSCRIBED PLACEMENT
CBM Asia Development Corp. has completed its non-brokered private placement offering for 11 million units at 30 cents per unit for gross proceeds of $3.3-million. Each unit comprises one common share and one full share warrant, exercisable to purchase one additional common share at a price of 40 cents for a period of three years, provided that if the company's shares trade at $1.25 per share or more for 20 consecutive days on a weighted average basis, the company shall have the right to accelerate the expiry date of the warrants upon 30 days notice.
The company originally announced the offering in Stockwatch on Sept. 16, 2009, as consisting of 10 million units. On Sept. 25, 2009, the company announced in Stockwatch that due to oversubscription it was increasing the size of the offering to 11 million units, offered on the same terms, and subject to regulatory acceptance of the TSX Venture Exchange. Additional subscription agreements were received but were not able to be processed by the company due to time and regulatory constraints.
The shares and warrants comprising the units are subject to a hold period ending Feb. 7, 2010, which is four months plus one day from the date of issuance, in accordance with the policies of the TSX-V and applicable securities laws. The offering remains subject to regulatory approval pending filing of final documentation. Fees totalling $194,200 have been paid to placement agents in relation to this offering.
The net proceeds of the offering will be used to finance the acquisition, exploration and development of the company's coal bed methane interests in the South Sumatra basin of Indonesia and for general working capital purposes.
We seek Safe Harbor.