Upsized non-brokered deal funds coalbed methane projects in Indonesia
By Devika Patel
Knoxville, Tenn., March 6 - CBM Asia Development Corp. said it once again increased a non-brokered private placement of units, this time to C$16 million from C$10 million. The deal priced for C$5 million Dec. 5 and raised C$1.29 million on Dec. 30 and C$2.94 million on Feb. 10. The offering was increased on Feb. 10.
The company is now selling 88,888,888 units of one common share and one warrant at C$0.18 per unit. It sold 7,167,253 units in the first tranche and 16,346,714 units in the second tranche. The company had originally planned to sell a total of 27,777,777 units.
Each two-year warrant will be exercisable at C$0.35. The strike price is a 70.73% premium to C$0.205, the Dec. 2 closing share price.
The additional proceeds will be used to fund the acquisition and exploration costs of the company's existing coalbed methane projects in Indonesia, to identify and possibly acquire new properties and for working capital.
CBM previously said it would also use proceeds to repay short-term loans.
Based in Vancouver, B.C., CBM Asia is an unconventional gas exploration company.
| Issuer: | CBM Asia Development Corp.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | C$16 million
|
| Units: | 88,888,888
|
| Price: | C$0.18
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.35
|
| Agent: | Non-brokered
|
| Pricing date: | Dec. 5
|
| Upsized: | Feb. 10, March 6
|
| Settlement dates: | Dec. 30 (for C$1,290,106), Feb. 10 (for C$2,942,409)
|
| Stock symbol: | TSX Venture: TCF
|
| Stock price: | C$0.205 at close Dec. 2
|
| Market capitalization: | C$18.93 million
|
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