Conifex Timber Inc. has entered into an investment agreement, pursuant to which it will issue $30 million of senior secured notes. The Note will have a term of five years, bear no interest for the first two years with interest of 5% per annum thereafter until maturity and will be secured by, among other things, a first lien on a forest licence with 200,000 cubic meters of annual cut held by a Conifex subsidiary.

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Conifex Timber announces investment agreement

Aug 04, 2015. /Lesprom Network/. Conifex Timber Inc. has entered into an investment agreement, pursuant to which it will issue $30 million of senior secured notes, as the company said in the press release received by Lesprom Network.

The Note will have a term of five years, bear no interest for the first two years with interest of 5% per annum thereafter until maturity and will be secured by, among other things, a first lien on a forest licence with 200,000 cubic meters of annual cut held by a Conifex subsidiary.

Conifex can elect after 17 months to pay the principal amount of the Note in shares of the holder. The proceeds of the Note will be used for general corporate purposes. The agreement and the issuance of the Note are subject to customary closing conditions.

Conifex Timber Inc. 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.