CBM Asia increases private placement

By Romel S. Gurky

CBM Asia Development Corp. said it had increased its private placement of units from $10 million to $16 million.

According to the Company's press statement on Tuesday, the private placement will now consist of a total of 88,888,888 Units at a price of $0.18 per Unit for gross proceeds of $16,000,000, of which 23,513,968 Units totalling $4,232,515 have been issued to date.

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 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% in cash and 6.25% in finder's warrants are payable on the remaining Private Placement, with each finder's warrant entitling the holder to purchase one common share of the Company at a price of $0.18 for a period of 24 months from closing, subject to acceleration on the same terms as the Warrants.

The additional proceeds from the Private Placement will be used to fund the acquisition and exploration costs of the Company's existing coalbed methane projects in Indonesia, identify and acquire new properties for exploration and development, and for general working capital purposes.

The balance of the Private Placement is expected to close in two tranches with the first tranche totalling approximately $8,000,000 to close in this week and the second tranche to close following receipt of all requisite regulatory approvals.

Editing by Benget Besalicto Tnb.