Jemi Fibre (JFI-V) to resume at May 16 open
April 25, 2014 - NR
Tembec (TMB-T) has reached an agreement to sell approximately 49,500 hectares of land located within the regional district of east Kootenay, British Columbia, to Jemi Fibre Corp. for a price of $35-million. The transaction includes a seven-year earn-out provision pursuant to which Tembec would be entitled to additional payments of at least $2.1-million. The sale is expected to close in two phases: the closing of the first phase in connection with the sale of approximately 17,700 hectares for a price of $15-million is expected 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 expected to occur in September, 2014. The closing of both phases of the transaction is subject to Jemi obtaining adequate financing and other customary conditions. There can be no assurance that the transaction will be consummated in whole or in part.
The transaction is part of the previously announced B.C. land sale initiative. The company has set an objective of realizing up to $75-million in land sales by December, 2014. To date, the company has realized a total of $23.2-million. Assuming that the aforementioned transactions close as contemplated, total land sales will have reached $60.3-million, including the $2.1-million of deferred payments. The company owns a further 7,433 hectares of land in B.C., for which it actively continues to solicit potential buyers. Based on transactions to date, the company is reducing its objective and now expects to realize up to $70-million in land sales by December, 2014. There can be no assurance that the company will attain the stated objective or that it will do so within the specified time period. |
