EACOM Timber Corporation Closes $34.6 Million Best Efforts Private Placement
21 April 2011 - 1:27AM
PR Newswire (Canada)
MONTRÉAL AND VANCOUVER, April 20 /CNW/ -- MONTRÉAL AND VANCOUVER,
April 20 /CNW/ - EACOM Timber Corporation (ETR: TSX-V) ("EACOM", or
the "Company") is pleased to announce that it has closed its
previously announced best efforts private placement, sold by a
syndicate of agents led by Canaccord Genuity Corp., and including
Dundee Securities Ltd. (collectively, the "Agents"). The
financing consisted of 69,122,500 common shares of the Company (the
"Common Shares") sold at $0.50 per Common Share for gross proceeds
of $34,561,250, including the partial exercise of the Agents'
over-allotment option for 9,122,500 Common Shares. 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. 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/April2011/20/c5701.html
table border="0" tr td bInvestors:/bbr/ Marc Girardbr/ Executive
Vice-President and Chief Financial Officerbr/ (514) 848-5133 /td
/tr tr td bMedia Relations:/bbr/ Frédéric Bérardbr/ HKDPbr/ (514)
917-1040 /td /tr /table p /p
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