Jemi Fibre Corp. has entered into a term sheet with a U.S. based institutional lender under which, subject to certain conditions, the Company will borrow an aggregate maximum principal amount of $25 million (the "Loan") to be secured in a senior position against the Company’s private timberlands.

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Jemi Fibre announced $25 million long-term loan

Sep 06, 2014. /Lesprom Network/. Jemi Fibre Corp. has entered into a term sheet with a U.S. based institutional lender under which, subject to certain conditions, the Company will borrow an aggregate maximum principal amount of $25 million (the "Loan") to be secured in a senior position against the Company’s private timberlands.

The loan will be due 10 years from the date of advance and will bear interest at competitive, long-term, institutional rates. The closing of the loan, which is anticipated to occur in the Company’s 3Q, is subject to the Company obtaining adequate financing to repay, or re-finance, a minimum of approximately $10 million in existing secured loans on its private timberlands. There can be no assurance that the loan will be consummated in whole or in part.

Michael Ainsworth, CEO, commented: "This financing, along with an anticipated repayment of our current bridge loans, will recapitalize our balance sheet and provide our company with the foundation for stable cash flow and long term growth."

Jemi Fibre is a British Columbia based forest products company. 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 manufacturing facility in Cranbrook producing pressure treated posts, rails and lumber for agricultural and industrial use, and private timberlands located in the Kootenay region.