Conifex Timber Inc.
TSX VENTURE : CFF

Conifex Timber Inc.

February 16, 2012 08:28 ET

Conifex Announces Closing of $28.5 Million Private Placement Financing and Fourth Quarter 2011 Earnings Release Call

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 16, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Conifex Timber Inc. ("Conifex" or the "Company") (TSX VENTURE:CFF) is pleased to announce that it has completed its previously announced bought deal offering (the "Brokered Placement") of 3,860,700 common shares of the Company, which includes the partial exercise of the underwriters' over-allotment option, resulting in aggregate gross proceeds of $27,024,900. The Brokered Placement was conducted on a bought deal private placement basis by Raymond James Ltd. and a syndicate of underwriters, including TD Securities Inc., CIBC and Salman Partners Inc. (collectively, the "Underwriters"). In connection with the Brokered Placement, the Company paid the Underwriters a cash fee in the amount of 5% of the gross proceeds from the Brokered Placement.

The Company has also completed its previously announced non-brokered private placement (the "Non-Brokered Placement") of 214,286 common shares to the CEO and other individual insiders of the Company, for aggregate gross proceeds of $1,500,002.

Conifex intends to use the net proceeds from the Brokered Placement and the Non-Brokered Placement to fund capital expenditures and for general corporate purposes.

All common shares issued in connection with the Brokered Placement and the Non-Brokered Placement are subject to a four-month hold period, which expires on June 17, 2012.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold in the United States except pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Release of Fourth Quarter 2011 Financial Results and Conference Call

The Company also announced today that it will release its fourth quarter 2011 financial results after markets close on Tuesday, February 21, 2012.

Conifex will host a conference call to discuss its fourth quarter 2011 financial and operating results on Wednesday, February 22, 2012 at 8:00 a.m. Pacific Time / 11:00 a.m. Eastern Time. To participate in the call, please dial: 416-695-6616 / 800-355-4959. The call will be available on instant replay access until March 31, 2012 by dialling 905-694-9451 or 800-408-3053 and entering participant pass code 8116753.

About Conifex Timber Inc.

Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Upon completion of its bioenergy facility at Mackenzie, British Columbia, Conifex's business sectors will be expanded to include bioenergy.

Conifex's sawmill complex situated in Fort St. James, British Columbia was purchased in August 2008 and commenced operations on a one-shift basis in March 2009. Conifex's two-mill complex situated in Mackenzie, British Columbia was purchased in June 2010. One mill at Mackenzie started up on a one-shift basis in November 2010. Conifex added a second shift at Fort St. James and Mackenzie in late March 2011 and expects to operate at approximately 70% of capacity once the production ramp up phase from the second shifts is completed. On a combined basis, Conifex now owns sawmills having an annual lumber production capacity of approximately 745 million board feet on a two-shift basis. The sawmill complexes are supported by renewable forestry licences with an allowable annual cut of approximately 1.6 million cubic metres.

Forward-Looking Statements

Certain statements in this news release may constitute "forward-looking statements", including statements with respect to the private placements described herein. Forward-looking statements are statements that address or discuss activities, events or developments that the Company expects or anticipates may occur in the future. When used in this news release, words such as "estimates", "expects", "plans", "anticipates", "projects", "will", "believes", "intends" "should", "could", "may" and other similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the current expectations and beliefs of the Company's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of the Company or industry may be materially different from those implied by such forward-looking statements. Forward-looking statements involve significant uncertainties, should not be read as a guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including the ability to obtain all necessary regulatory and stock exchange approvals and those matters described in the Company's 2010 annual management's discussion and analysis, available on SEDAR at www.sedar.com. Accordingly, readers should exercise caution in relying upon forward-looking statements and the Company undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.

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 release.

Contact Information

  • Conifex Timber Inc.
    Yuri Lewis
    Chief Financial Officer
    (778) 331-8687