Hot Chili Limited (ASX:HCH) announced a private placement of 37,100,000 shares at AUD 0.60 per share for gross proceeds of up to AUD 22,300,000 to Rex Harbour and Associates, CAP S.A., and existing investors, Panoramic Resources Ltd. and Taurus Funds Management Pty Limited, and other sophisticated and professional investors on December 14, 2011. Bell Potter Securities will serve as a lead manager for the transaction. The company will also issue unlisted option for every three shares exercisable at AUD 0.75 for a period of one-year. CAP S.A., Panoramic Resources Ltd., and Taurus Funds Management Pty Limited will together invest for AUD 16,850,000 in the transaction. On December 20, 2011, the company closed the first tranche. The company issued 9,015,668 shares for gross proceeds of AUD 5,409,400.80. The company also issued 3,005,226 options exercisable at AUD 0.75 per share for a period expiring on December 20, 2012. The second tranche will be completed subject to shareholder approval which will be received in a meeting to be held on February 1, 2012. The second tranche will consist of 28,100,000 shares and 9,400,000 options. On February 1, 2012, the shareholders approved the first and the second tranche of the transaction. On February 9, 2012, Hot Chili Limited closed the transaction. The company raised AUD 16,850,000 in the closure of the second tranche. The company issued 28,083,334 shares and 9,361,113 options in the second tranche. The options will expire on February 9, 2013. In total, it issued 37,099,002 shares for AUD 22,259,401.2 and 12,366,339 options. Investors including Fenice Investments Inc and Seager Rex Harbour invested for AUD 300,000, Susan Jennifer Harbouratf Joffe Preservation and Seager Rex Harbour invested for AUD 20,000, Conlatuse Limited and Seager Rex Harbour invested for AUD 50,000, Harbour Foundation and Seager Rex Harbour invested for AUD 230,000, and Seager Rex Harbour invested for AUD 600,000.