Jemi Fibre (TSXV: JFI) Completes Tembec Timberlands Acquisition
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Vancouver, British Columbia - (Newsfile Corp. - June 25, 2014) (www.investorideas.com newswire) Jemi Fibre Corp. (TSXV: JFI) ("Jemi Fibre" or the "Company") is pleased to announce that it has completed the first of two timberlands acquisitions from Tembec Inc. ("Tembec"), previously announced on April 25, 2014.
The Company has closed on the acquisition of approximately 17,700 hectares, and timber rights for an additional approximately 1,900 hectares, for a purchase price of $15 million. The timberlands are located in the Regional District of East Kootenay, British Columbia and are the first phase of a two phase purchase of timberlands from Tembec. The second phase is for approximately 31,800 hectares, which the Company anticipates closing in September 2014 for a purchase price of $20 million. The closing of the second phase is subject to the Company obtaining adequate financing and other customary conditions. There can be no assurance that the second phase will be consummated in whole or in part.
Concurrent with the completion of the timberlands acquisition, the Company is pleased to announce that it has completed a senior secured debt financing pursuant to which the Company issued notes to investment funds managed by Vertex One Asset Management ("Vertex") for $11 million. The Vertex loan has an upfront fee of 5%, a term of 6 months and bears an interest rate of 17% per annum. The Company has the option to renew the loan for an additional 6 month term and during the second term the loan would bear an interest rate of 22%. Additionally, the Company is pleased to announce that it has completed an additional secured financing with BG Capital Group Ltd. ("BG Capital") for $5 million. The BG Capital loan is subordinate to the Vertex loan, has a term of 12 months and bears an interest rate of 22%.
The Company intends to refinance the Vertex loan and the BG Capital loan in connection with phase two of the Tembec timberlands acquisition.
ON BEHALF OF THE BOARD OF DIRECTORS JEMI FIBRE CORP.
Jemi Fibre Corp. is a manufacturer of specialty lumber products and treated wood products, is an owner of private timberlands and has logging operations in British Columbia. The Company is listed on the TSX-V ("JFI").
Special Note Regarding Forward-Looking Statements
Certain statements included herein constitute forward-looking statements. The words "expect", "intend", "anticipate", "propose" and "may" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding future financings, and the development and operation of Jemi Fibre's business. Forward-looking statements are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management teams of Jemi, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks and accordingly may not occur as described herein or at all. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.
Neither the 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 news release.
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