Jemi Fibre Corp. Announces $30,000,000 Credit Facility for Working Capital and Funding of Second Phase of Private Timberland Acquisition
Vancouver, British Columbia--(Newsfile Corp. - August 21, 2014) - Jemi Fibre Corp. (TSXV: JFI) ("Jemi Fibre" or the "Company") announced today that it has obtained a credit facility from a Canadian asset based lender (the "Lender") under which, subject to certain conditions, the Company will borrow an aggregate maximum principal amount of $30,000,000 (the "Facility"). The Facility is being made through a $10,000,000 loan ("Facility A") for the purposes of refinancing existing debt on the Company's WoodEx sawmill and to provide general working capital for the Company; and, through a $20,000,000 loan ("Facility B") for the purpose of completing, in September 2014, the acquisition from Tembec of an additional 31,800 hectares of private timberland previously announced on May 25, 2014 and June 25, 2014.
The Facility is due on demand and if no demand has been made by the Lender, the Facility will be due 24 months from the date of advance. The Facility will bear interest, subject to certain adjustments, at 16% per annum payable at 13% monthly and 3% deferred until the earlier of 24 months or demand under the Facility. The interest rate may be decreased by up to 3% if the Company meets certain fixed charge coverage ratios. A repayment fee of 2% of the loan amount will be charged on Facility A if repaid in full within six months of the initial advance of funds. Such fee is reduced by 0.5% every 6 months thereafter. A repayment fee of 2% of the loan amount will be charged on Facility B if repaid in full within six months of the initial advance of funds. Such fee is reduced to 0% thereafter.
Michael Ainsworth, CEO, commented: "With this bridge financing, Jemi Fibre can complete the series of acquisitions it has assembled over the past year. It will also enable us to progress the operations of our newly acquired logging, mill and private timberland operations as we work towards recapitalizing our balance sheet with the appropriate mix of long term debt and equity."
ON BEHALF OF THE BOARD OF DIRECTORS
JEMI FIBRE CORP.
CEO and President
For further information, please contact:
Brent Lokash, EVP
Tel: 1 604 862-5190
About Jemi Fibre
Jemi Fibre is a British Columbia based forest products company which trades on the TSX Venture Exchange under the symbol JFI. Jemi Fibre's operations consist of a full service contract logging division, with operations in Mackenzie and Cranbrook, a sawmill located in Edgewater producing high value lumber products, a manufacturing facility in Cranbrook producing pressure treated posts, rails and lumber for agricultural and industrial use, and private timberlands located in the Kootenay region.
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.