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| Home : West Mountain Announces Proposed Transaction with Reignwood International Investment (Group) Company Limited |
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Jul 10
2013 |
West Mountain Announces Proposed Transaction with Reignwood International Investment (Group) Company Limited |
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CALGARY, ALBERTA--(Marketwired - July 10, 2013) - West Mountain Capital Corp. (the "Company" or "West Mountain") (TSX VENTURE:WMT) announces that it has entered into negotiations with Reignwood International Investment (Group) Company Limited ("Reignwood") in relation to a non-binding term sheet that sets out the basic terms and conditions of a proposed private placement (collectively, the "Proposed Private Placement"). The terms of the Proposed Private Placement are anticipated to be as follows: (a) the purchase by Reignwood Holdings Hong Kong Limited ("Reignwood Hong Kong") of 6,800,000 common shares in the capital of the Company (the "Common Shares") at a price of $0.32 per Common Share in consideration of the payment of $2,176,000 in cash to the Company; (b) the purchase by Reignwood Hong Kong of an unsecured convertible debenture of the Company in the principal amount of $10,068,028 (the "Convertible Debenture"); and (c) the purchase by Reignwood Hong Kong of 82 common shares (the "PS2 Common Shares") of the Company's wholly-owned subsidiary Phase Separation Cayman Limited ("PS2 Cayman") at a price of $17,550 per PS2 Common Share in consideration of the payment of USD$1,755,000 in cash to PS2 Cayman, for aggregate proceeds of approximately $14,000,000. The Convertible Debenture is anticipated to have a term of 12 months, bear interest at the rate of 3.5% per annum and be convertible into Common Shares at the conversion price of $0.42 per Common Share. PS2 Cayman owns Phase Separation Solutions Hong Kong Limited and Shanghai Phase Separation Environmental Technology Co., Ltd., the entities through which the Company presently operates in China. The proceeds of the Proposed Private Placement with Reignwood will be used to repay outstanding bank indebtedness, to underwrite the build-out of West Mountain's business plan in China and for general operating purposes. |
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| Source:http://www.marketwire.com/mw/release.do?id=1809957&sourceType=3 |
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