VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 15, 2014) - Conifex Timber Inc. ("Conifex") (TSX:CFF) announced today that it has completed its previously announced private placement of $12 million aggregate principal amount of unsecured subordinated convertible notes (the "Notes").
The Notes bear interest at 7% per annum from the date of issue, such interest being payable in cash on June 15th and December 15th of each year until maturity. The principal amount of the Notes is convertible, at the option of the holder, into common shares of Conifex prior to December 15, 2016 at a conversion price of $6.22 per common share, being a conversion rate of approximately 160 common shares per $1,000 principal amount of Notes so converted, subject to adjustments pursuant to the terms of the Notes.
In compliance with Toronto Stock Exchange ("TSX") policies, any accrued and unpaid interest on the Notes on conversion shall be payable in cash. Additionally, pursuant to its terms, no early redemption is provided for the Notes prior to maturity.
The Company primarily intends to use the net proceeds of the private placement to repay its existing convertible notes totalling approximately $9.7 million which mature as of the date hereof, and intends to use the balance of the net proceeds for working capital and general corporate purposes.
All Notes issued in connection with the private placement are subject to a statutory hold period of four months and a day from the date of issuance, which expires on April 16, 2015. The completion of the private placement is subject to obtaining final approval of the TSX in accordance with its customary post-closing procedures.
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 and distribution. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Upon completion of its power generation facility at Mackenzie, British Columbia, Conifex's business sectors will be expanded to include bioenergy.
Forward-Looking Statements
Certain statements in this news release may constitute "forward-looking statements". Forward-looking statements are statements that address or discuss activities, events or developments that Conifex 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. Examples of such forward-looking information that may be contained in this news release include statements regarding the use of proceeds of the private placement, the expected completion and final TSX approval of the private placement. Assumptions underlying the Company's expectations regarding forward-looking information contained in this news release include, among others, that the Company will receive final TSX approval for the private placement. 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, without limitation: failure to satisfy customary closing conditions in respect of the private placement, including satisfaction of TSX conditions; and other risk factors described in the Company's 2013 annual information form, available on SEDAR at www.sedar.com. These risks, as well as others, could cause actual results and events to vary significantly. 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.
Contact Information:
Chief Financial Officer
(778) 331-8687