Vancouver, British Columbia--(Newsfile Corp. - December 22, 2014) - Jemi Fibre Corp. (TSXV: JFI) ("Jemi Fibre" or the "Company") announced today that it has completed the acquisition of approximately 4,000 hectares of additional private timberlands from Tembec Inc. ("Tembec"), as previously announced on October 14, 2014. The timberlands are located in the Regional District of East Kootenay, British Columbia and are adjacent to the approximately 49,500 hectares of timberlands the Company acquired from Tembec as previously announced on April 25, 2014, June 25, 2015 and September 16, 2014.
The Company also announces that it has agreed to borrow an additional $17,575,000 under Facility B of the $30,000,000 credit facility previously announced on August 27, 2014. The funds were used to complete the acquisition of the new private timberland and to repay the secured loans from Vertex One Asset Management and BG Capital Group Ltd. previously announced on June 25, 2014. The total amount owing under Facility B, which is secured in senior position against all private timberland owned by the Company, is $39,075,000.
In connection with the additional funding, the Company amended the terms of both Facility B and the $10,000,000 Facility A, previously announced on August 27, 2014, to accelerate the timing of the Company's ability to decrease the interest rate by 3% if the Company meets certain fixed charge coverage ratios. Based on the Company's current financial performance, the interest rate on both Facilities is anticipated to be at 13% per annum payable at 11% monthly and 2% deferred. The repayment fee on both facilities has also been revised to 3% if the loans are repaid at any time prior to maturity.
"The acquisition of more private timberland is another step forward in the Company's strategic plan to grow its forestry asset base and provide stable, sustainable and substantive returns to our shareholders", commented Mike Jenks, CEO. "Further, we are very pleased with the new financing. This has reduced our overall borrowing costs, increased our cash flow and demonstrates we are executing our plan to recapitalize our balance sheet. The Company intends to continue to execute on this plan by raising equity in the near term and refinancing with lower cost debt facilities which we announced on August 28, 2014."
The Company also wishes to announce that co-founder and CFO Georgina Martin has been appointed Executive Vice-Chair and Tom Stefan has been appointed CFO of the Company.
Tom is a seasoned executive with 29 years experience in management, growth, restructuring, and corporate finance in resource based companies. He was most recently CFO and VP Finance at Taiga Building Products, responsible for executing a strategic realignment program which included acquisitions, and product and geographic expansion. His career includes working in forest products, mining, public accounting and real estate. He has held positions of increasing responsibilities at NorskeCanada/Pacifica Papers (TSX), Bema Gold Corporation (TSX), Teck Corporation (NYSE, TSX), and KPMG.
ON BEHALF OF THE BOARD OF DIRECTORS
JEMI FIBRE CORP.
"Mike Jenks"
_________________
Mike Jenks
CEO
For further information, please contact:
Brent Lokash, EVP
Tel: 1 604 428-1075
Email: brent.lokash@jemifibre.com
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.
Source: Jemi Fibre Corp.