EACOM Timber Corporation Announces Closing of $40 million Secured Debenture Financing
11 April 2012 - 12:13AM
PR Newswire (Canada)
MONTRÉAL AND VANCOUVER, April 11, 2012 /CNW/ - EACOM Timber
Corporation ("EACOM", or the "Company") today announced that it has
successfully closed its previously announced $40 million secured
debenture financing (the "Transaction"). The net proceeds of the
$40 million 10% senior secured debentures due April, 2017 will be
used for general corporate purposes. An aggregate of 200
million common share purchase warrants were also issued as part of
the Transaction at an exercise price of $0.20 per common share. As
part of the Transaction, Fairfax Financial Holdings Limited is
entitled to nominate two directors to EACOM's board.
Mr. Chris Hodgson has been appointed as an independent
director to the Board, subject to TSX-V approval. Fairfax is
entitled to nominate an additional director in the future. Rick
Doman, President and CEO stated "We are delighted to have
additional strength in our institutional base with the addition of
the Fairfax Financial group participation in the Transaction.
We are also very happy to have two of our existing institutions,
Lansdowne UK Strategic Investment Master Fund Limited and Radcliffe
group also participate." "We welcome Chris to the Board and look
forward to working with him. Chris has a vast amount of
experience and expertise that will add value to our already strong
and independent Board" commented Terry Lyons, Chairman of EACOM.
About EACOM EACOM Timber Corporation is a TSX-V listed company.
EACOM owns eight sawmills, all located in Eastern Canada, and
related tenures. The mills are Timmins, Nairn Centre, Gogama, Elk
Lake and Ear Falls in Ontario, and Val-d'Or, Ste-Marie and Matagami
in Quebec. The sawmills in Ear Falls, Ontario and Ste-Marie,
Quebec, are currently idled. Operations in Matagami and
Val-d'or are currently on temporary shut down. These
temporary measures primarily relate to the impact of low lumber
prices for stud grade lumber products, the strong CDN dollar and
the impact of the 7.6 percent tax imposed on shipments to the U.S.
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. The TSX
Venture Exchange must approve the appointment of any officer or
director. 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. EACOM TIMBER
CORPORATION CONTACT: Investors:Marc GirardExecutive Vice-President
and Chief Financial Officer(514) 848-5133Media Relations:Frederic
BerardHKDP(514) 917-1040
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