Aug 31, 2010. /Lesprom Network/. EACOM Timber Corporation has posted a loss of $2.5 million in its latest quarter, compared to a loss of $205,000 a year ago. (The quarter results do not include any operations of the acquired Forest Products Business because acquisition was completed on June 30, 2010, the quarter end.) This increase was due mainly to higher professional and due diligence fees, travel expenses and Big River Sawmill holding costs for the quarter ended June 30, 2010 compared to the same period in 2009. The quarter was highlighted by the closing of the $145 million private placement financing and the acquisition of Domtar's Forest Products Business on June 30, 2010. EACOM acquired seven sawmills, a 66.7% equity interest in an eighth sawmill, a remanufacturing facility and a 50% interest in a second remanufacturing facility. As of July 1, 2010, EACOM became a manufacturer, marketer and distributer of lumber, chips and wood-based value-added products as well as the manager of the related forest resources. The sawmills have an annual production capacity of approximately 890 million board feet and an annual allowable cut of 3.5 million cubic metres of timber. The total consideration paid was cash of approximately $102 million and EACOM common shares valued at approximately $27 million (approximately 48 million common shares). The preliminary fair value allocation to net assets was $121 million, net of approximately $8 million in cash included in the acquisition. The total acquisition related expenses were approximately $1.4 million for the quarter. Consolidated cash and cash equivalents at June 30, 2010, was $42.9 million following completion of the financing (net of financing expenses) and acquisition. EACOM Timber Corporation owns seven sawmills and an equity interest in an eighth sawmill, all located in Eastern Canada and related tenures.