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CALGARY, June 15 /CNW/ - Aston Hill Financial Inc. (the "Company" or
"Aston Hill") (TSXV: AHF) is pleased to announce that it intends to undertake
a "best efforts" brokered private placement of a approximately 12,000,000
units at an Offering Price of $0.30 per unit (the "Units") for gross proceeds
to the Company of approximately $3,600,000 (the "Offering"). Each Unit is
comprised of one common share in the capital of the Company (a "Common Share")
and one half of one common share purchase warrant (each whole Common Share
purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to
purchase one Common Share for a period of 18 months following the closing date
at a price of $0.45. An Option exists entitling the Agent (as defined below)
to purchase from the Company additional Units at the Offering Price equal, in
aggregate, to up to 15% of the aggregate number of Units sold pursuant to the
Offering, at any time up to 5:00 pm (Toronto time) on the date which is 2 days
prior to the Closing Date, subject to regulatory approval.
Aston Hill is currently on pace to grow assets under advisory and
management ("AUM") to the significant milestone of $1.0 billion by the end of
the second quarter as the unitholders of a series of existing funds have
approved a decision to merge their fund into one under the advisory of Aston
Hill. The merger of the funds is subject to numerous conditions precedent and
no assurance can be provided that such merger will actually be completed.
CEO Eric Tremblay and President Ben Cheng first formed a partnership in
February 2007 at which time Aston Hill had AUM of only $25 million. During the
ensuing 10 quarters, AUM has grown steadily and should stand at $1.02 billion
by the end of June, 2009. This accomplishment is especially noteworthy in
light of recent economic times.
The latest increase in AUM has come from the adoption of new funds being
rolled into existing income based funds managed by Aston Hill's Toronto
office. The performance of virtually all funds managed by Aston Hill has been
excellent and the Company currently enjoys a steady inflow of new funds that
currently surpasses $10 million per week. Aston Hill currently has plans to
launch a new North American energy fund, as well as another flow through fund
in the fall of 2009.
In the Calgary office, Aston Hill's oil and natural gas property
management division, Sword Energy Inc. ("Sword"), has been able to preserve
the underlying value of the assets it manages relative to its benchmark
indices. Sword is now actively seeking to acquire additional assets and grow
AUM to better utilize its existing platform and enhance shareholder returns.
Aston Hill currently owns 2.57% of Sword alongside its institutional clients
and carried an $8.63 million book value for this investment on December 31,
The net proceeds from the Offering will be used to fund the Company's
continuing equity interest (2.57%) in Sword Energy Inc. and for general
corporate and working capital purposes.
Cormark Securities Inc. (the "Agent") will act as sole agent for this
financing. As consideration for their participation in the Offering, the Agent
will receive a cash commission equal to 6% of the total proceeds raised. In
addition, the Agent will be issued broker warrants exercisable to acquire that
number of Common Shares as is equal to 6.0% of the aggregate number of Units
issued pursuant to the Offering. Each broker warrant shall entitle the holder
thereof to acquire one Common Share at the Offering price for a period of 18
months following the Closing Date.
Closing of the proposed private placement is anticipated to occur on or
about July 15, 2009 and will be conditional upon, among other things, the
receipt of all necessary regulatory approvals (including from the TSX Venture
Exchange). All securities issued pursuant to this private placement are
subject to a four month hold period from closing.
Aston Hill is an asset management company with expertise in the energy
sector, income products, oil and gas property management and private equity
and has offices in Calgary and Toronto.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available."
The TSX Venture Exchange has neither approved nor disapproved the
information contained herein.
Forward-Looking Statements: This news release contains certain
"forward-looking statements" within the meaning of such statements under
applicable securities law. Forward-looking statements are frequently
characterized by words such as "plan", "continue", "expect", "project",
"intend", "believe", "anticipate", "estimate", "may", "will", "potential",
"proposed" and other similar words, or statements that certain events or
conditions "may" or "will" occur. These statements are only predictions.
Various assumptions were used in drawing the conclusions or making the
projections contained in the forward-looking statements throughout this news
release. Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made, and are subject to a variety
of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. In particular, assumptions in this news release include the
successful completion of the Offering, the receipt of necessary regulatory
approval for the Offering and completion of the merger of the funds as
described above, among others.
For a detailed description of the risks and uncertainties facing the
Company and its business and affairs, readers should refer to the Company's
annual audited financial statements and management discussion and analysis for
the year ended December 31, 2008, both of which are available at
www.sedar.com. The Company undertakes no obligation to update forward-looking
statements if circumstances or management's estimates or opinions should
change, unless required by law. The reader is cautioned not to place undue
reliance on forward-looking statements.
For further information:
For further information: concerning this press release, please contact:
Eric Tremblay, Chief Executive Officer, Aston Hill Financial Inc., (403)
770-4817; Larry Titley, Vice President and CFO, Aston Hill Financial Inc.,