Conifex Announces Closing of Senior Secured Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 18, 2013) - Conifex Timber Inc. ("Conifex" or the "Company") (TSX VENTURE:CFF) announced today that it has completed its previously announced senior secured financing (the "Financing") pursuant to which the Company issued promissory notes to investment funds managed by Vertex One Asset Management Inc. in the aggregate principal amount of $30 million.
The promissory notes will expire on September 18, 2017, subject to early redemption by the Company as provided in the notes, and bear interest at a rate of 8% for the term of the loan. As additional consideration for the loan, the Company issued common share purchase warrants (the "Warrants") entitling the holders to purchase up to an aggregate of 1,060,000 common shares of the unissued capital stock of the Company at a price of $8.25 per share until September 18, 2017. Any common shares issuable upon exercise of the Warrants are subject to a hold period of four months and a day from the date of issue of the warrants.
About Conifex Timber Inc.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of dimension lumber. 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.
Forward-Looking Statements
Certain statements in this news release may constitute "forward-looking statements", including statements with respect to the Financing described herein and the bioenergy facility. 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 approvals, negotiate definitive documentation and successfully identify satisfactory financing with respect to the bioenergy facility, as well as those matters described in the Company's 2012 annual information form for the fiscal year ended December 31, 2012, 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.
