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TORONTO, Sept. 9, 2015 /CNW/ - Aston Hill Financial Inc. (the "Company" or "Aston Hill") announces a fully subscribed non-brokered private placement (the "Private Placement") for $6.3 million.
The Private Placement consists of the issuance of an aggregate of approximately 14 million Units at a price of $0.45 per Unit for gross proceeds of $6.3 million. Each Unit consists of one common share in the capital of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each four Warrants shall entitle the holder thereof to purchase one common share in the capital of the Company at a price of $0.60 per Common Share for a period of 12 months from the closing of the Private Placement.
Proceeds from the Private Placement are expected to be used to reduce debt and for general corporate purposes.
"Our ability to raise assets in what has been a challenging market environment demonstrates the support our shareholders have in our vision and ability to grow the firm," said Peter Anderson, Interim Chief Executive Officer. "This is one more piece of the ongoing corporate initiatives we have undertaken to support the long-term growth of Aston Hill. Our commitment remains on building our in-house mutual fund business, and this private placement, combined with the recent senior management changes, corporate reorganization, and cost cutting initiatives, puts us in a position to achieve this growth."
Added President and Chief Investment Officer, Ben Cheng*: "With continued economic uncertainty in financial markets, especially as of late, we believe our liquid alternative mutual funds will meet the growing demand for diversified, risk-adjusted investments." As previously announced, the Company terminated its sub-advisory relationship with IA Clarington Investments Inc. in order to allow for Mr. Cheng to be appointed as a portfolio manager exclusively for Aston Hill's investment products later in the year.
*Ben Cheng does not act as portfolio manager for the investment funds named in this document. See www.astonhill.ca for details.
Aston Hill Financial Inc. (TSX: AHF) is a diversified asset management company with a suite of retail mutual funds, closed end funds, hedge funds and segregated institutional funds. Aston Hill Financial has offices in Toronto and Halifax.
SOURCE Aston Hill Financial Inc.
For further information: Please contact: Peter Anderson, Interim Chief Executive Officer, Aston Hill Financial Inc., (416) 583-2300; Ben Cheng, President & Chief Investment Officer, Aston Hill Financial Inc., (416) 583-2300