VANCOUVER, B.C. / ACCESSWIRE / August 28, 2014 / Jemi Fibre Corp. (TSX-V: JFI) ("Jemi Fibre" or the "Company") announced today that it has entered into a term sheet with a U.S. based institutional lender (the "Lender") under which, subject to certain conditions, the Company will borrow an aggregate maximum principal amount of $25,000,000 (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 third quarter, is subject to the Company obtaining adequate financing to repay, or re-finance, a minimum of approximately $10,000,000 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."
ON BEHALF OF THE BOARD OF DIRECTORS
JEMI FIBRE CORP.
CEO and President
For further information, please contact:
Brent Lokash, EVP
Tel: 1 604 428-1075
Email: [email protected]
About Jemi Fibre
Jemi Fibre is a British Columbia based forest products company which trades on the TSX Venture Exchange under the symbol JFI. 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.
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 Jemi, 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