The Jemi Shares are expected to be delisted from the TSX Venture Exchange in due course and CanWel intends to apply for Jemi Fibre to cease to be a reporting issuer.
CanWel's senior lenders have provided $26 million in additional financing under the existing credit facility with CanWel, secured by certain assets of Jemi Fibre and CanWel (the "Debt Financing"). The net proceeds of the Private Placement and Debt Financing were used to partially refinance Jemi Fibre's senior indebtedness and to provide for transaction costs and working capital.
Amar Doman, Chairman and CEO of CanWel, commented: "We are pleased to have successfully completed the acquisition of Jemi Fibre and look forward to integrating the team and operations onto our platform, and continuing the growth trajectory of the business. I would like to personally welcome Mike Jenks and the entire Jemi Fibre team to CanWel."
Jemi Fibre is a vertically-integrated forest products company that operates primarily in British Columbia and Saskatchewan.
CanWel is one of Canada's largest national distributors in the building materials and related products sector.
