news
Development Corp (C-TCF) - News Release
CBM Asia completes second closing for $2.94-million
2012-02-10 08:52 ET - News Release
Shares issued 85,956,841
TCF Close 2012-02-09 C$ 0.175
Mr. Alan Charuk reports
CBM ASIA COMPLETES SECOND TRANCHE OF NON-BROKERED PRIVATE PLACEMENT; INCREASES FINANCING TO $10 MILLION
Further to CBM Asia Development Corp.'s news release of Dec. 30, 2011, it has completed a second closing of its non-brokered private placement totalling 16,346,714 units at a price of 18 cents per unit for gross proceeds of $2,942,409, of which 6,002,361 units totalling $1,084,425 were purchased by directors and officers of the company.
Each Unit consists of one common share (a "Share") and one transferable share purchase warrant (a "Warrant") to purchase an additional Share at a price of
.35 for a period of 24 months, subject to acceleration by the Company, at its discretion, after 4 months from closing upon 30 days notice if the closing price of the Company's shares on the TSX Venture Exchange (the "Exchange") equals or exceed
.50 per share for 20 consecutive trading days.
A finder's fee of 6% is payable on a portion of the gross proceeds raised from the Second Closing, part of which will be paid in common shares of the Company at a deemed price of
.18 per share. All securities issued pursuant to the Second Closing are subject to a 4 month hold period expiring June 8, 2012.
The Company also announces that, subject to Exchange acceptance, it has increased the size of the private placement from $5 million to $10 million for a total of 55,555,555 Units at a price of
.18 per Unit, of which 23,513,968 Units representing gross proceeds of $4,232,515 have been issued to date.
The additional proceeds from the increased offering will be used to, among other things, fund the acquisition and exploration costs of the Company's existing coalbed methane projects in Indonesia, identify and, if warranted, acquire new properties and for general working capital purposes.
In managing the immediate and near-term capital requirement of the Company's Indonesian coalbed methane projects, the Board is conducting a review of financial proposals, including equity and non-equity financing options, from a select group of interested parties. Based on market analysis and independent reports, the Board believes the fundamentals of the Asian gas industry remain highly supportive of opportunities within Indonesia's rapidly emerging coalbed methane industry. The Board anticipates completing the third tranche of the private placement shortly.
We seek Safe Harbor.