VANCOUVER, BRITISH COLUMBIA - Conifex Timber Inc. ("Conifex" or the "Company") (TSX VENTURE:CFF) today announced that it has entered into a definitive purchase agreement (the "Agreement") to acquire (the "Transaction") Lignum Forest Products LLP ("Lignum"), a private partnership which operates a lumber marketing and distribution business.
Lignum is an established and well respected name in the forestry and lumber distribution business in British Columbia. Lignum serves customers and distributes products that are complementary to those of Conifex. Lignum provides extensive market reach in the North American market through a network of established inventory locations.
The Transaction provides for the acquisition by Conifex of Lignum for approximately US$4 million, which Conifex intends to fund from its existing available cash.
Ken Shields, Chief Executive Officer of Conifex, commented: "We believe that this Transaction, including the retention of Lignum's experienced personnel, will further advance our marketing and logistics capability while concurrently reducing overall marketing costs. We expect to significantly extend our market reach, particularly in the improving U.S. market, through enhanced access to complementary customers and product lines."
The Transaction is expected to close on or before January 31, 2014, subject to customary closing conditions. Mr. Hans Thur, Senior Vice-President of Conifex Timber Inc., will have oversight responsibility for Lignum.
Appointment of Patrick Bell as Executive Vice President
The Company also announced today that Patrick Bell has been appointed to the newly created role of Executive Vice President, Conifex Timber Inc. Mr. Bell brings to his new role extensive experience derived from a diverse background. During his political career, Mr. Bell served three terms in the BC Legislature and held a number of high profile positions with the Provincial Government, including Minister of Jobs, Tourism and Skills Training, Minister of Forests and Range, and Minister of Agriculture. Mr. Bell's entrepreneurial career involved interests in a variety of businesses, including a logging company and a trucking company. Earlier in his career, Mr. Bell worked in the hospitality industry at a corporate level and remains involved with the organization as a franchisee.
The role of Executive Vice President will be based in Conifex's Prince George, B.C. office and will focus primarily on the enhancement of the Company's regional operations including raw material supply, lumber manufacturing, capital expenditure programs, and human resources.
Mr. Bell was appointed to the Company's Board of Directors in August 2013 and will continue to serve as a director.
Conifex CEO Ken Shields commented: "Pat's passion for and knowledge of the forest industry became apparent in his role as a Conifex Director. We are delighted to now have full-time access to Pat as a senior executive."
About Conifex Timber Inc.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, and the manufacture, sale and distribution of dimension lumber. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Upon completion of its bioenergy facility at Mackenzie, British Columbia, Conifex's business sectors will be expanded to include bioenergy.
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