CanAsia Financial Inc.

August 12, 2009 19:27 ET

CanAsia Financial Inc. Announces Loan to Classet Holdings Inc., Amendment to Agreement in Principle and Lift of Trading Halt

CALGARY, ALBERTA--(Marketwire - Aug. 12, 2009) - CanAsia Financial Inc. (the "Company" or "CanAsia") (TSX VENTURE:CNA) announces, subject to any required regulatory approvals or requirements, that it has agreed to provide Classet Holdings Inc. ("Classet Holdings") a loan of $100,000, secured against all of the assets of Classet Holdings, carrying an interest rate of 4% per annum for a term of twelve (12) months. The loan proceeds will be used for working capital and for payment of professional fees that Classet Holdings has incurred as a result of the previously announced qualifying transaction with CanAsia (the "Qualifying Transaction").

The Corporation also announces that the agreement in principle with Classet Holdings previously announced on May 20, 2009 has been amended to eliminate the payment of the $450,000 redeemable debenture (the "Debenture") and to increase the number of newly issued redeemable convertible preferred shares of CanAsia payable to Classet Holdings from 23 million to 27.5 million. In addition, the proceeds from the private placement, previously announced on August 7, 2009 (the "Private Placement"), will be used to increase the Company's net tangible assets. The Private Placement is subject to receipt of all necessary regulatory approvals.

CanAsia is also pleased to announce that the trading halt that has been in place since it announced the proposed Qualifying Transaction on May 20, 2009, will be lifted at the opening of markets on August 13, 2009.

About CanAsia Financial Inc.

The Company is a CPC within the meaning of the policies of the Exchange. The Company commenced operations when it completed its initial public offering; however it currently has no assets other than cash. Since the date of listing of the Company's shares on the Exchange, the Company has identified and evaluated several businesses and assets with a view to completing a "Qualifying Transaction" under the Exchange's CPC policies.

Completion of the transaction is subject to a number of conditions, including but not limited to, Exchange acceptance and if applicable pursuant to Exchange Requirements, majority of the minority shareholder approval. Where applicable, the transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the management information circular or filing statement to be prepared in connection with the transaction, any information released or received with respect to the transaction may not be accurate or complete and should not be relied upon. Trading in the securities of a capital pool company should be considered highly speculative.

Neither TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • CanAsia Financial Inc.
    James G. Louie
    President and Chief Executive Officer
    (403) 870-7383
    (403) 242-7479 (FAX)
    CanAsia Financial Inc.
    243 Sienna Hills Drive S.W.
    Calgary, Alberta T3H 2Y8