VANCOUVER, British Columbia, March 27, 2019 (GLOBE NEWSWIRE) -- Conifex Timber Inc. (“Conifex”, "we", "our") (CFF.TO) announced today that it has entered into a definitive purchase agreement with certain subsidiaries of Canwel Building Materials Group Ltd. ("CanWel") for the sale of Lignum Forest Products LLP ("Lignum"). The consideration for the transaction is approximately US$11.5 million, including approximately US$10.5 million for working capital. The estimated working capital is subject to customary post-closing adjustments.
Ken Shields, Conifex's President and CEO, stated: "As we worked over the past several months capturing the synergies and integrating our two acquired US South mills into Conifex, it became apparent to us that Lignum’s strength in lumber marketing and distribution would be well positioned for the future under the guidance of a company with a good reputation and with a single focus on marketing forest products."
Mr. Shields continued: "During our period of ownership, Lignum employees worked hard and compiled a consistent record of profitability, and we thank the employees of Lignum for their strong performance."
The transaction is expected to close on April 1, 2019, subject to customary closing conditions.
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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. Conifex has expanded its operations to include bioenergy production following the commencement of commercial operations of its power generation facility at Mackenzie, BC.
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 and include statements regarding the expected closing date of the transaction. 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 Conifex's management. Because forward-looking statements involve known and unknown risks, uncertainties and other factors, actual results, performance or achievements of Conifex and its 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 lumber price volatility, lumber market conditions, log costs, log quality and availability and other risks described in Conifex's 2017 AIF, 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 Conifex undertakes no obligation to publicly revise them to reflect subsequent events or circumstances, except as required by law.