Jemi Fibre Corp. has completed the acquisition of approximately 4,000 hectares of additional private timberlands from Tembec Inc., as previously announced on October 14, 2014. The timberlands are located in the Regional District of East Kootenay, British Columbia and are adjacent to the approximately 49,500 hectares of timberlands the Company acquired from Tembec as previously announced on April 25, 2014, June 25, 2015 and September 16, 2014.

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Jemi Fibre completes acquisition of 4,000 hectares of additional private timberlands from Tembec

Dec 24, 2014. /Lesprom Network/. Jemi Fibre Corp. has completed the acquisition of approximately 4,000 hectares of additional private timberlands from Tembec Inc., as the company said in the press release received by Lesprom Network. 

The timberlands are located in the Regional District of East Kootenay, British Columbia and are adjacent to the approximately 49,500 hectares of timberlands the Company acquired from Tembec as previously announced on April 25, 2014, June 25, 2015 and September 16, 2014.

The Company also announces that it has agreed to borrow an additional $17,575,000 under Facility B of the $30 million credit facility previously announced on August 27, 2014. The funds were used to complete the acquisition of the new private timberland and to repay the secured loans from Vertex One Asset Management and BG Capital Group Ltd. previously announced on June 25, 2014. The total amount owing under Facility B, which is secured in senior position against all private timberland owned by the Company, is $39,075,000.

In connection with the additional funding, the Company amended the terms of both Facility B and the $10 million Facility A, previously announced on August 27, 2014, to accelerate the timing of the Company's ability to decrease the interest rate by 3% if the Company meets certain fixed charge coverage ratios. Based on the Company's current financial performance, the interest rate on both Facilities is anticipated to be at 13% per annum payable at 11% monthly and 2% deferred. The repayment fee on both facilities has also been revised to 3% if the loans are repaid at any time prior to maturity.

"The acquisition of more private timberland is another step forward in the Company's strategic plan to grow its forestry asset base and provide stable, sustainable and substantive returns to our shareholders", commented Mike Jenks, CEO. "Further, we are very pleased with the new financing. This has reduced our overall borrowing costs, increased our cash flow and demonstrates we are executing our plan to recapitalize our balance sheet. The Company intends to continue to execute on this plan by raising equity in the near term and refinancing with lower cost debt facilities which we announced on August 28, 2014."

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.