CALGARY, Jun 6, 2008 (Canada NewsWire via COMTEX) —-Aston Hill Financial Inc. (the “Company” or “Aston Hill”) (TSXV: AHF: 2.16, 0.14, 6.93%) is pleased to announce that, subject to TSX Venture Exchange acceptance, the Company has completed the first closing in respect of its previously announced private placement to subscribers in Alberta, British Columbia, Ontario, and Quebec (the “Private Placement”) by issuing 7,878,762 common shares (the “Shares”) at a price of $0.42 per Share for gross proceeds of $3,309,080 (the “Closing Amount”). The proceeds of the financing will be used for general working capital and to advance the Company’s business plans.
Directors and officers of the Company and of the Company’s subsidiaries subscribed for 3,719,047 Shares, representing $1,562,000 or approximately 47.2% of the Closing Amount. No fees were payable in connection with such subscriptions. The Private Placement was reviewed by the independent directors of the Company who determined that the terms of the Private Placement were reasonable in the circumstances. The Private Placement is exempt from the valuation and minority approval requirements of Multilateral Instrument 61-101, since the fair market value of the Private Placement is less than 25% of the market capitalization of the Company. Management determined that it was desirable to conduct the first closing of the Private Placement within 21 days from the date that the terms of the Private Placement were first disclosed.
The Private Placement remains subject to final approval from the TSX Venture Exchange. The Shares issued pursuant to this Private Placement will be subject to a four month statutory hold period. The Company may conduct subsequent closings in relation to the Private Placement.
Aston Hill is an investment manager with expertise in the oil and gas sector, energy-based trusts, oil and gas property management, private equity and high-yield structured products.