Conifex Timber obtained a final receipt and conditional approval of the TSX for its short form prospectus

Conifex Timber obtained a final receipt dated March 1, 2017 for its short form prospectus, filed with the securities regulatory authorities in all provinces of Canada other than Québec, in connection with its previously announced bought deal offering led by Raymond James Ltd., together with CIBC World Markets Inc.

According to the announcement, the underwriters agreed to purchase, on a bought deal basis, 3,000,000 common shares of Conifex at a price of CAD 3.05 per common share for total gross proceeds of CAD 9,150,000. Conifex has also granted the underwriters an option, exercisable at any time for a period of 30 days following closing, to acquire up to an additional 450,000 common shares on the same terms for additional gross proceeds of up to CSD 1,372,500. The Toronto Stock Exchange (TSX) has conditionally approved the listing of the common shares to be sold under the offering.

The company also announced that it has obtained conditional approval of the TSX for its previously announced private placement of 1,600,000 common shares to an existing shareholder at the same price as the issue price under the Offering for total gross proceeds of CAD 4,880,000. Assuming the over-allotment option is not exercised, the offering and the private placement will result in gross proceeds of CAD 14,030,000. If the over-allotment option is exercised in full, the offering and the private placement will result in gross proceeds of CAD 15,402,500.

As it was earlier reported, Conifex primarily intends to use the net proceeds of the offering and the private placement to partially repay outstanding indebtedness under its existing credit facility with Wells Fargo Capital Finance Corporation Canada, which may re-drawn, to partially pay costs of its El Dorado sawmill project and for working capital.

Earlier Conifex Timber appointed a new board member

About Conifex Timber:

The company is publicly listed softwood forest products company operating in the Northern Interior region of British Columbia, Canada. Its primary business is the manufacture of structural grade SPF dimension lumber. Conifex’s operations include timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing. Conifex’s lumber products are sold in the United States, Chinese, Canadian and Japanese markets.

Source: Woodbizforum