Conifex Announces Acquisition of Lumber Marketing and Distribution Business and Appointment to Executive Team
January 06 2014 - 9:00AM
Marketwired
Conifex Announces Acquisition of Lumber Marketing and Distribution
Business and Appointment to Executive Team
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 6, 2014) -
Conifex Timber Inc. ("Conifex" or the "Company") (TSX-VENTURE:CFF)
today announced that it has entered into a definitive purchase
agreement (the "Agreement") to acquire (the "Transaction") Lignum
Forest Products LLP ("Lignum"), a private partnership which
operates a lumber marketing and distribution business.
Lignum is an established and well respected name in the forestry
and lumber distribution business in British Columbia. Lignum serves
customers and distributes products that are complementary to those
of Conifex. Lignum provides extensive market reach in the North
American market through a network of established inventory
locations.
The Transaction provides for the acquisition by Conifex of
Lignum for approximately US$4 million, which Conifex intends to
fund from its existing available cash.
Ken Shields, Chief Executive Officer of Conifex, commented: "We
believe that this Transaction, including the retention of Lignum's
experienced personnel, will further advance our marketing and
logistics capability while concurrently reducing overall marketing
costs. We expect to significantly extend our market reach,
particularly in the improving U.S. market, through enhanced access
to complementary customers and product lines."
The Transaction is expected to close on or before January 31,
2014, subject to customary closing conditions. Mr. Hans Thur,
Senior Vice-President of Conifex Timber Inc., will have oversight
responsibility for Lignum.
Appointment of Patrick Bell as Executive Vice President
The Company also announced today that Patrick Bell has been
appointed to the newly created role of Executive Vice President,
Conifex Timber Inc. Mr. Bell brings to his new role extensive
experience derived from a diverse background. During his political
career, Mr. Bell served three terms in the BC Legislature and held
a number of high profile positions with the Provincial Government,
including Minister of Jobs, Tourism and Skills Training, Minister
of Forests and Range, and Minister of Agriculture. Mr. Bell's
entrepreneurial career involved interests in a variety of
businesses, including a logging company and a trucking company.
Earlier in his career, Mr. Bell worked in the hospitality industry
at a corporate level and remains involved with the organization as
a franchisee.
The role of Executive Vice President will be based in Conifex's
Prince George, B.C. office and will focus primarily on the
enhancement of the Company's regional operations including raw
material supply, lumber manufacturing, capital expenditure
programs, and human resources.
Mr. Bell was appointed to the Company's Board of Directors in
August 2013 and will continue to serve as a director.
Conifex CEO Ken Shields commented: "Pat's passion for and
knowledge of the forest industry became apparent in his role as a
Conifex Director. We are delighted to now have full-time access to
Pat as a senior executive."
About Conifex Timber Inc.
Conifex and its subsidiaries' primary business currently
includes timber harvesting, reforestation, forest management, and
the manufacture, sale and distribution of dimension lumber.
Conifex's lumber products are sold in the United States, Chinese,
Canadian and Japanese markets. Upon completion of its bioenergy
facility at Mackenzie, British Columbia, Conifex's business sectors
will be expanded to include bioenergy.
Forward-Looking Statements
Certain statements in this news release may constitute
"forward-looking statements" including the timing and completion of
the Transaction. Forward-looking statements are statements that
address or discuss activities, events or developments that the
Company expects or anticipates may occur in the future. When used
in this news release, words such as "estimates", "expects",
"plans", "anticipates", "projects", "will", "believes", "intends"
"should", "could", "may" and other similar terminology are intended
to identify such forward-looking statements. Forward-looking
statements reflect the current expectations and beliefs of the
Company's management. Because forward-looking statements involve
known and unknown risks, uncertainties and other factors, actual
results, performance or achievements of the Company or industry may
be materially different from those implied by such forward-looking
statements. Forward-looking statements involve significant
uncertainties, should not be read as a guarantee of future
performance or results, and will not necessarily be an accurate
indication of whether or not such results will be achieved. A
number of factors could cause actual results to differ materially
from the results discussed in the forward-looking statements,
including the additional matters described in the Company's most
recent Annual Information Form, available on SEDAR at
www.sedar.com. Accordingly, readers should exercise caution in
relying upon forward-looking statements and the Company undertakes
no obligation to publicly revise them to reflect subsequent events
or circumstances, except as required by law.
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 release.
Conifex Timber Inc.Yuri LewisChief Financial Officer(778)
331-8687
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