VANCOUVER, BC / ACCESSWIRE / March 11, 2015 / Jemi Fibre Corp. (TSXV: JFI) ("Jemi Fibre" or the "Company") is pleased to announce it has entered into a letter of intent to acquire all of the issued and outstanding shares of Aallcann Wood Suppliers Inc. (the "Transaction"). Aallcann is a post peeling and treatment operation based in Prince Albert, Saskatchewan that produces treated timber products for agricultural markets. It's treatment facility is situated on approximately 180 acres of land and it holds a license for 36,000 cubic meters of Crown annual allowable cut ("AAC").
The letter of intent provides that upon closing of the Transaction, Aallcann will have positive net working capital of approximately $500,000 and Jemi Fibre will pay the shareholders of Aallcann $1.6 million. Following closing, Jemi Fibre will also pay the shareholders of Aallcann $10 for each additional cubic meter of AAC secured for up to nine months following closing of the Transaction.
Mike Jenks, Chairman & CEO, commented "This acquisition is a natural extension of our vertical integration strategy and a low-risk opportunity to add scale to our growing wood processing division. Similar to previous acquisitions, we anticipate applying our industry experience and harvesting capabilities to improve profitability and provide an attractive return on investment".
Completion of the Transaction is subject to conditions in the ordinary course of transactions of this nature, including acceptance by the TSX Venture Exchange. There can be no assurances that the Transaction will be completed.
For further information, please contact:
Brent Lokash, President
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, such risks, uncertainties and other factors set forth under "Risk Factors" in the Company's current MD&A filed with the British Columbia Securities Commission. 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 Corp.