EACOM Timber Corporation Announces $30.0 Million Best Efforts Private Placement
05 April 2011 - 6:08AM
PR Newswire (Canada)
MONTRÉAL AND VANCOUVER, April 4 /CNW/ -- MONTRÉAL AND VANCOUVER,
April 4 /CNW/ - EACOM Timber Corporation (TSX-V: ETR ) ("EACOM", or
the "Company") is pleased to announce a private placement of
60,000,000 common shares (the "Common Shares") for gross proceeds
of $30.0 million (the "Financing"). Each Common Share will be
priced at $0.50. The Financing will be sold on a commercially
reasonable best efforts basis conducted by a syndicate of agents
led by Canaccord Genuity Corp. and including Dundee Securities Ltd.
(the "Agents"). The Company has also granted the Agents an
over-allotment option to sell up to an additional 10,000,000 Common
Shares on the same terms and conditions as the Financing. The
over-allotment option is exercisable 48 hours prior to the closing
of the Financing. "We are very pleased about this financing", said
Rick Doman, President and CEO of EACOM. "It demonstrates the strong
support that EACOM has for its current and future projects." The
net proceeds from the Financing will be used for working capital
and general corporate purposes, including for potential
acquisitions. The Agents will receive a cash commission equal to
6.0% of the gross proceeds, and broker warrants in an amount equal
to 6.0% of the number of Common Shares sold by the Agents. The
Agents' warrants expire 24 months after closing of the Financing.
All securities sold pursuant to the Financing will be subject to a
statutory four month hold period. Closing of the Financing is
scheduled for April 20, 2011, subject to the approval of the TSX
Venture Exchange and the satisfaction of other customary closing
conditions. About EACOM EACOM Timber Corporation is a TSX-V listed
company. EACOM owns seven sawmills and an equity interest in an
eighth sawmill, all located in Eastern Canada, and related tenures.
The mills are Timmins, Nairn Centre, Gogama and Ear Falls in
Ontario, and Val-d'Or, Ste-Marie and Matagami in Quebec. The equity
interest is in the Elk Lake sawmill located in Ontario. The
sawmills in Ear Falls, Ontario, and Ste-Marie, Quebec, are
currently idled. EACOM also owns one idle mill in Big River,
Saskatchewan. EACOM also owns a remanufacturing facility and a 50%
interest in an "I" joist plant. The TSX Venture Exchange has
neither approved nor disapproved the content of this press release.
All director and officer appointments are subject to TSX Venture
Exchange approval. Forward-Looking Statements All statements in
this news release that are not based on historical facts are
"forward-looking statements." While management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based
may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside
of our control that could cause actual results to materially differ
from such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, those set forth under
the captions "Risk Factors" of the Filing Statement dated January
8, 2010 and the current MD&A for EACOM Timber Corporation on
file with the Canadian Securities Commissions. To view this news
release in HTML formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/April2011/04/c9123.html
p /p p align="justify" bInve/bbstors:/bbr/ Marc Girardbr/ Executive
Vice-President and Chief Financial Officerbr/ (514) 848-5133 /p p
align="justify" bMedia Relations:/bbr/ Frédéric Bérardbr/ HKDPbr/
(514) 917-1040 /p
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