CBM Asia completes final tranche of financing
Thursday, June 7 2012 - 02:09 AM WIB
CBM Asia Development Corp. said it had completed the final tranche of its non-brokered private placement totaling 12,876,208 units at a price of $0.18 per unit for gross proceeds of about $2.3 million.
The company said in a press statement on Wednesday that in total, it had issued 88,972,222 units representing gross proceeds of more than $16 million for a total of 167,761,809 common shares.
Each unit consists of one common share and one transferable share purchase warrant to buy an additional share at a price of $0.35 for a period of 24 months, subject to acceleration by the company, 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 5% cash and finder's warrants of 5% of the units sold are payable in connection with the final tranche. Each finder's warrant will entitle the holder 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 final tranche are subject to a 4 month hold period expiring October 6, 2012.
"With the closure of the final tranche, we have secured our 2012 financing requirements and increased institutional ownership to 35%, with Indus Capital Partners holding a 16.6% interest," says Alan Charuk, CBM Asia's President and CEO.
"We look forward to executing our growth plans to obtain a 10-15 Tcf recoverable resource base," he added.
Editing by Benget Besalicto Tnb