Jemi Fibre Corp. Announces Conditional Purchase of Land

V.JFI

Vancouver, British Columbia--(Newsfile Corp. - April 25, 2014) - Jemi Fibre Corp. (TSXV: JFI) ("Jemi Fibre" or the "Company") is pleased to announce it has reached an agreement to purchase approximately 49,500 hectares of land and timber rights located within the Regional District of East Kootenay, British Columbia, from Tembec ("Tembec") for a price of $35 million ("Transaction"). The Transaction includes a seven year earn-out provision pursuant to which Tembec would be entitled to additional payments of $2.1 million plus a portion of any proceeds of subsequent sales of the subject lands the Company may wish to pursue. The agreement provides for closing to occur in June, 2014 and also provides that the sale could close in two phases: if completed in phases, the closing of the first phase, in connection with the sale of approximately 17,700 hectares, and timber rights for an additional approximately 1,900 hectares, for a price of $15 million, is to occur in June, 2014 and the closing of the second phase, in connection with the sale of approximately 31,800 hectares for a price of $20 million, is to occur in September, 2014. The closing of the Transaction, altogether or in phases, is subject to the Company obtaining adequate financing and other customary conditions. There can be no assurance that the Transaction will be consummated in whole or in part.

The Company is also pleased to announce that its shareholders have approved the Company's acquisition of WoodEx Industries Ltd., Kootenay Wood Preservers Ltd. and Prairie Holdings Inc., as previously announced on February 13, 2014 and have approved a consolidation of the Company's shares on a one (1) new for three (3) old common share basis, as previously announced on April 2, 2014. The Company anticipates closing the acquisitions, and the previously announced financing in connection with the acquisitions, in May, 2014. Implementation of the share consolidation is subject to the discretion of the directors. For more information, please review the Company's filings at www.sedar.com.

ON BEHALF OF THE BOARD OF DIRECTORS
JEMI FIBRE CORP.

"Michael Ainsworth"
______________________
Michael Ainsworth
CEO and President

For further information, please contact:

Brent Lokash, EVP
Tel: 1 604 862-5190
Email: brent.lokash@jemifibre.com

Special Note Regarding 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 Strata, 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.


Rate this press release
3 stars
v
Usefulness

Clarity

Credibility
Add to favourites icon Add to favourites