Jemi Fibre Corp.
TSX VENTURE : JFI

Jemi Fibre Corp.

March 24, 2015 09:54 ET

Jemi Fibre Corp. Announces Closing of $13 Million Bought Deal Equity Financing and Exercise of Warrants

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 24, 2015) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Jemi Fibre Corp. (TSX VENTURE:JFI) ("Jemi Fibre" or the "Company") is pleased to report that it has closed its previously announced bought deal private placement of 21,670,000 units (the "Units") of the Company, at a price of $0.60 per Unit, for aggregate gross proceeds to Jemi Fibre of $13,002,000 (the "Offering"). Each Unit is comprised of one common share of the Company (a "Common Share") and one common share purchase warrant (a "Warrant") entitling the holder thereof to acquire an additional Common Share (a "Warrant Share") at an exercise price of $0.75 per Warrant Share for a period of thirty-six (36) months following the closing of the Offering.

The Offering was completed on a bought deal basis by a syndicate of underwriters led by GMP Securities L.P. and including CIBC World Markets Inc., Mackie Research Capital Corporation and Dundee Securities Ltd. (collectively, the "Underwriters"). In consideration for the services of the Underwriters in connection with the Offering, the Company paid the Underwriters a fee of $780,120 representing 6.0% of the gross proceeds from the Offering.

The net proceeds from the Offering will be used for debt reduction, future acquisitions, working capital and general corporate purposes.

Additionally, Jemi Fibre is pleased to announce that, in connection with the closing of the Offering, Mike Jenks, Chairman and CEO of Jemi Fibre, has exercised an aggregate of 8,333,333 common share purchase warrants at an exercise price of $0.32 per share.

The securities issued in connection with the Offering are subject to a hold period under applicable Canadian securities laws which will expire four months and one day from March 24, 2015. The Offering is subject to final acceptance by the TSX Venture Exchange.

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 wood treatment facility in Cranbrook producing pressure treated posts and lumber for agricultural 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, such risks, uncertainties and other factors set forth under "Risk Factors" in the Company's current MD&A filed with the British Columbia Securities Commission. 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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