VANCOUVER, B.C. / ACCESSWIRE / June 9, 2014 / Jemi Fibre Corp. (TSX-V: JFI) (“Jemi Fibre” or the "Company”) is pleased to announce that it has completed the acquisitions, previously announced on February 13, 2014, of WoodEx Industries Ltd. (“WoodEx”), Kootenay Wood Preservers Ltd., and Prairie Holdings Inc. (the “Acquisitions”).
Concurrent with the completion of the Acquisitions, the Company is pleased to announce that it has completed the first tranche of a non-brokered, private placement financing, previously announced on February 13, 2014 and May 23, 2014, in the amount of $2,500,000 (the “Private Placement”). The Company anticipates completing a second tranche of the Private Placement, for gross proceeds up to $500,000, by the end of June 2014.
A total of 13,333,333 units (“Units”) were issued at a price of $0.1875 per Unit in connection with the completion of the first tranche of the Private Placement. Each Unit consists of one common share of the Company and one full share purchase warrant. Each warrant will entitle the purchaser to purchase an additional Jemi Fibre common share at a price of $0.25 per share for a period of five years following the closing of the Private Placement.
The net proceeds of the Private Placement will be used for working capital purposes for the companies acquired in the Acquisitions, which was a condition of the closing of the Acquisitions, and for general working capital purposes.
Both the common shares issued as part of the Units and any common shares issued upon exercise of the warrants, are subject to a hold period and may not be traded until October 7, 2014, except as permitted by applicable securities legislation and the rules of the TSX Venture Exchange (the “Exchange”).
Mike Jenks, an Insider (as that term is defined under the policies of the Exchange) of the Company, subscribed for a total of 10,666,666 Units as part of the Private Placement and upon closing of the Private Placement, will own approximately 36% of the shares of the Company on an undiluted basis.
No finder’s fees are payable in association with the Private Placement.
Upon the completion of the Acquisitions and the Private Placement, the Company has a total of 44,128,635 common shares issued and outstanding.
The Company is also pleased to announce that, concurrent with the completion of the Acquisitions, it has entered into a software license agreement (the “License Agreement”) with K. Douglas Riddell (“Riddell”), the CEO and manager of the sawmill operated by WoodEx. Under the terms of the License Agreement, the Company has been granted a perpetual license to use LumberNetWeb, a sawmill software information system owned by Riddell, in consideration for the Company issuing Riddell 1,800,000 share purchase warrants, vesting, in increments of 50,000 each per month, on the condition that the WoodEx mill exceeds $300,000 in profit for such month. Each warrant will entitle Riddell to purchase an additional Jemi Fibre common share at a price of $0.50 per share for a period of three years from the date of vesting of the warrant. Where the Jemi Fibre common shares trade for 10 consecutive trading days at a weighted average trading price of not less than $1.00 per share, the Company may accelerate the expiry of any vested warrants in amounts up to 20% of the average daily volume during the 10 consecutive trading days preceding the acceleration notice.
ON BEHALF OF THE BOARD OF DIRECTORS
JEMI FIBRE CORP.
CEO and President
For further information, please contact:
Brent Lokash, EVP
Tel: 1 604 862-5190
Special Note Regarding Forward-Looking Statements
Certain statements included herein constitute forward-looking statements. The words "expect", "intend", "anticipate", "propose" and "may" and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, statements regarding future financings, and the development and operation of Jemi Fibre’s business. Forward-looking statements are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management teams of Strata, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks and accordingly may not occur as described herein or at all. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Source: Jemi Fibre Corp.