Conifex announces C$25M financing agreement, will sell up to 4,075,000 shares at C$7 each through private placements and over-allotment option

Wendy Lisney

LOS ANGELES , February 2, 2012 (Industry Intelligence) – Conifex Timber Inc. of Vancouver, British Columbia, announced on Wednesday that it has entered a C$25 million financing agreement.

The company said Raymond James Ltd. and a syndicate of underwriters had agreed to purchase 3,357,143 common shares on a bought deal private placement basis, with an over-allotment option to purchase up to an additional 503,571 shares.

The syndicate, which includes TD Securities Inc., CIBC and Salman Partners Inc., has agreed a purchase price of $7/share, which will generate gross proceeds of approximately $23.5 million if the over-allotment option is not exercised, and around $27 million if it is.

In addition, Conifex said it intended to undertake a non-brokered private placement of up to 214,286 shares at the issue price to generate gross proceeds of approximately $1.5 million. The company's CEO and other company officials will take part in the non-brokered placement, the company said.

The two private placements are expected to close or around Feb. 16, subject to the TSX Venture Exchange's regulatory and stock exchange approvals.

Net proceeds from the brokered and non-brokered placements will be used to fund capital expenditures and for general corporate purposes. Conifex has agreed to pay a cash fee of 5% of the gross proceeds to the syndicate of underwriters.

Conifex operates sawmills in Fort St. James and Mackenzie with a combined annual lumber capacity of 745 million board ft. on a two-shift basis.

The primary source of this article is a statement issued by Conifex, Vancouver, British Columbia, on Feb. 1, 2012.

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