/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TSX-V: PCT
VANCOUVER, Aug. 11, 2011 /CNW/ - Prima Colombia Hardwood Inc. (TSX-V:PCT) ("Prima" or the "Company") is pleased to announce a non-brokered private placement offering to raise gross proceeds of a minimum of $3.5 million and a maximum of $8.1 million. Under the terms of the private placement, the Company will offer for sale up to 90,000,000 Units (the "Units") at $0.09 per Unit. Each Unit will consist of one Common Share of the Company and one share purchase warrant (the "Warrants"), each of which will entitle the holder to purchase one additional Common Share of the Company at an exercise price of $0.35 per share until September 21, 2015. The Warrants associated with this Offering will have the same terms as the existing Prima Warrants that are listed for trading on the TSX Venture Exchange under the symbol PCT.WT. The Company will pay a cash finders fee of 5% of the total gross proceeds of the Offering.
The Offering is expected to close on or about August 23, 2011 and is subject to certain customary conditions and regulatory approvals, including the approval of the TSX Venture Exchange. As the Units will be offered and sold on a private placement basis, all securities issued in connection with the Offering will be subject to a hold period of four months from the date of closing of the Offering.
The Company intends to use the minimum net proceeds of this Offering to obtain its cutting permits and the balance for its general working capital purposes and accordingly, the brokered financing announced on May 27, 2011 will not be proceeding.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state of the United States in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the 1933 Act, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as such terms are defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements.
About Prima Colombia
Prima Colombia Hardwood Inc. is a TSX Venture Exchange-listed Canadian
based forest products company focused on international tropical
hardwood timber development, production and marketing. Prima
Colombia's initial operations are located near Bahia Solano, Department
of Choco on the west coast of the Republic of Colombia. All Prima
forestry concessions are intended to be operated following the highest
standards of sustainable forestry and environmental management. Prima
brings over 30 years of forestry experience and dedication to best
environmental operating practices and working with local communities
and governmental agencies.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.