Capital Alliance to raise $3-million from placements
Capital Alliance Group Inc CPT
Shares issued 23,934,082 Feb 12 close $0.70
Fri 13 Feb 2004 News Release
Mr. Toby Chu reports
CAPITAL ALLIANCE GROUP TO RAISE $3 MILLION FROM TWO BROKERED FINANCINGS
Capital Alliance Group has arranged two brokered private placements, one
for $1-million with Union Securities and the other for $2-million with
Kingsdale Capital Markets. The finances will be raised by issuing 5 million
units at 60 cents per unit. Each unit will consist of one common share and
one-half of a share purchase warrant, each whole warrant exercisable for
one common share at 70 cents for twelve months from closing. The finances
will be used to expand business activities of CPT's China subsidiary, CIBT
School of Business, and for general working capital purposes.
"This financing will create strategic positions for new institutional
investors introduced to us by the agents and will allow us to establish a
business presence in a senior equity market such as Toronto," stated Toby
Chu, president and chief executive officer of Capital Alliance Group. "This
financing also complements the continuing private equity financing for the
company's subsidiary, CIBT School of Business, announced last July while
reducing the dilution of Capital Alliance's ownership in CIBT."
The agents will be paid commissions of up to 8 per cent of the gross
proceeds raised. Union Securities will be issued agent's warrants entitling
them to purchase, for one year following closing at a price of 70 cents
each, common shares of the company in an amount equal to 10 per cent of the
number of units placed by them. Kingsdale will be issued agent's warrants
entitling them to purchase, for one year following closing at a price of 70
cents each, common shares of the company in an amount equal to 12 per cent
of the number of units placed by them. Capital Alliance has also agreed to
pay the agents a total of $30,000 in corporate finance and other fees. All
of the securities issued will be subject to a four-month hold period.
