CBM Asia closes 4th private placement
Wednesday, April 11 2012 - 07:32 AM WIB
CBM Asia Development Corp. said that it had completed a fourth tranche of its non-brokered private placement totaling 2,976,765 Units at a price of US$0.18 per Unit with gross proceeds of $535,818.
The company said in a press statement that each Unit consists of one common share and one transferable share purchase warrant to purchase an additional share at a price of $0.35 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 equals or exceed $0.50 per share for 20 consecutive trading days.
Finder's fees of up to 6.25% cash and finder's warrants of up to 6.25% of the Units sold are payable in connection with the Fourth Tranche. Each finder's warrant will entitle the holder thereof to purchase one share of the Company at a price of $0.18 for a period of 24 months, subject to acceleration on the same basis as the warrants forming part of the Units. All securities issued pursuant to the Fourth Tranche are subject to a 4 month hold period expiring August 6, 2012.
To date, the Company has issued a total of 76,096,014 Units representing gross proceeds of $13,697,283. A final closing of 12,876,208 Units for additional proceeds of $2,317,718 for a total offering of $16,015,000 is anticipated to close within the next 3 to 4 weeks following receipt of Exchange approval. There are currently a total of 154,885,601 common shares outstanding.
Previously, the company announced that it had completed a third tranche of its non-brokered private placement totaling 49,605,281 units at a price of $0.18 per Unit for gross proceeds of $8,928,950.
Each Unit consists of one common share and one transferable share purchase warrant to purchase an additional share at a price of $0.35 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 equals or exceed $0.50 per share for 20 consecutive trading days.
"The capital raised during this financing has major positive implications for the Company. First and foremost, the capital raised will cover the Company's 2012 primary operating budget focused on drilling activities in the Kutai West PSC and the Sekayu PSC,? said Alan Charuk, CBM Asia's CEO and President.
"Furthermore, this financing substantially broadens CBM Asia's shareholder base and for the first time includes a number of prominent institutional investors from London, New York, Toronto, Vancouver and Hong Kong who understand the value proposition that the Company's assets provide. The institutions have expressed strong support for management's goal of continuing to expand the Company's asset portfolio while at the same time de-risking its current projects."
The Company also announced the granting of stock options to its directors, officers, employees and consultants to purchase up to a total of 6,917,000 shares at a price of $0.19 per share for a period of five years.
Editing by Benget Besalicto Tnb.