Cumbre Ventures Inc.

January 30, 2007 12:33 ET

Cumbre Ventures Inc.: Completes Capital Pool Company Initial Public Offering

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 30, 2007) - Cumbre Ventures Inc. (the "Corporation"), a capital pool company, announced today that is has completed its initial public offering by issuing 1,000,000 common shares at a price of $0.20 per share, for gross proceeds to the Corporation of $200,000.

The common shares of the Corporation are expected to commence trading on the TSX Venture Exchange shortly under the trading symbol of "CUB.P".

The net proceeds of the offering will be used by the Corporation to identify and evaluate assets or businesses for acquisition with a view to completing a "Qualifying Transaction" under the capital pool company program of the TSX Venture Exchange.

Canaccord Capital Corporation acted as agent for the offering. In connection with the offering, the agent received an aggregate commission equal to 10% of the aggregate gross proceeds of the sale of the common shares. In addition, the Corporation granted to the agent compensation warrants entitling the agent to purchase up to 100,000 common shares at a price of $0.20 per common share for a period of 24 months from the date the Corporation's shares are listed on the TSX Venture Exchange. The agent also received an administration fee of $10,000.

1,250,000 of the previously issued and outstanding shares of the Corporation were placed in escrow in accordance with the policies of the TSX Venture Exchange. The shares are held by the Corporation's directors, officers and insiders and were issued at a price of $0.10 per share for an aggregate purchase price of $125,000. Upon completion of the offering, the Corporation granted a total of 242,500 options to its officers and directors. Each of the options is exercisable at a price of $0.20 per common share until January 26, 2010.

The directors and officers of the Corporation are Marc Cernovitch, Director, President, Chief Executive Officer and Chief Financial Officer; Nick DeMare, Director; Jason Bullen, Director and Secretary; and Craig Taylor, Director.

For additional information, please see the Prospectus of the Corporation dated December 27, 2006.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Cumbre Ventures Inc.
    Marc Cernovitch, President
    Chief Executive Officer and Chief Financial Officer
    (604) 685-9316
    (604) 683-1585 (FAX)