TSX-V: PCT
VANCOUVER, Oct. 7, 2011 /CNW/ - Prima Colombia Hardwood Inc. (TSX-V:PCT) ("Prima" or the "Company") has received approval from the TSX Venture Exchange to issue 2,594,034 common shares of the Company to Endeavour Capital Corporation ("Endeavour") pursuant to the term fee clause ("Term Fee") within their Bridge Loan Facility (the "Facility") disclosed on May 27, 2011. The Facility contemplated that if the $4,000,000 Bridge Loan was not fully pre-paid by September 19, 2011 as was originally anticipated, Prima would pay Endeavour a Term Fee of CDN $200,000 in cash or common shares of the Company. The number of shares to be issued was calculated using the 5-day volume weighted average price of the Company's shares immediately preceding September 19, 2011. All shares issued in connection with the Term Fee are subject to a four month hold period expiring February 8, 2012. In the event that Prima completes any future equity financings, Prima will utilize 100% of the net proceeds to first repay the Facility in full, including any accrued interest.
Prima also wishes to announce that pursuant to the Company's stock option plan, 200,000 incentive stock options have been granted to its investor relations provider, Vanguard Shareholder Solutions Inc. ("Vanguard"), entitling Vanguard to purchase 200,000 common shares of the Company at an exercise price of $0.10 per share for a period of 5 years, subject to TSX Venture Exchange approval.
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.