CBM Asia (CBMDF)

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CBM Asia Completes Initial Closing of Non-Brokered Private Placement; Engages Market Making Services

VANCOUVER, BRITISH COLUMBIA, December 30, 2011 - CBM Asia Development Corp. ("CBM Asia" or the "Company") (TSX.V: TCF) (US: CBMDF) (FWB: IY2) announces that further to its news release of December 4, 2011, it has completed an initial closing (the “Initial Closing”) of its non-brokered private placement totalling 7,167,253 units (the “Units”) at a price of $0.18 per Unit for gross proceeds of $1,290,106. Each Unit consists of one common share (a “Share”) and one transferable share purchase warrant (a “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 (the “Exchange”) equals or exceed $0.50 per share for 20 consecutive trading days.
The Company anticipates that a second closing of the private placement by management will be completed in early January, 2012, subject to applicable securities laws and the approval of the Exchange. To date, directors and officers of the Company have advanced approximately $1,072,600 to the Company in anticipation of participating in the private placement.
A third tranche of the private placement by certain institutional investors is also anticipated to take place in early January, 2012 following completion of such investors’ 2011 year ends.
The net proceeds of the private placement will be used to, among other things, fund the Company’s pilot production and/or exploration and development costs on its coalbed methane projects in Indonesia, repay certain short term loans, pay ongoing general and administrative expenses and for unallocated working capital.
A cash finder’s fee of 6% is payable on a portion of the gross proceeds from the Initial Closing.
All securities issued pursuant to the Initial Closing are subject to a 4 month hold period expiring May 1, 2012.
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The Company also announces that, subject to Exchange approval, it has engaged Venture Liquidity Providers (“VLP”) to provide assistance in maintaining an orderly trading market for the Company’s common shares. The market making service will be undertaken by VLP through a registered dealer, W.D. Latimer Co. Ltd., in compliance with the guidelines set out in Exchange Policy 3.4. J.C. Cunningham of VLP will be the person primarily responsible for providing VLP’s market making services to the Company.
The Company has engaged VLP for an initial term of one year at a fee of $5,500 per month, subject to termination by either party at any time upon written notice. The Company and VLP act at arm’s length and VLP has no present interest, direct or indirect, in the Company or its securities.
VLP is a specialized consulting firm based in Toronto, Canada that provides a variety of services focused on TSX Venture Exchange listed stocks. VLP's exclusive market making service is provided by W.D. Latimer Co. Ltd. of Toronto, Canada.