Jemi Fibre Corp. Announces Release of Third Quarter Results and Amendment to the Terms of $13 Million Financing

VANCOUVER, BC / ACCESSWIRE / March 23, 2015 / Jemi Fibre Corp. (TSX VENTURE:JFI) (“Jemi Fibre” or the “Company”) is pleased to announce its third quarter results for the three-month period ended January 31, 2015.

During the quarter, the Company was continuing to integrate the operations of its newly acquired divisions, including its Kootenay region based sawmill, wood treatment operation, logging operations and private timberlands. During this quarter, the results from the Company’s combined operating divisions were indicative of the Company’s ongoing business. Subject to production being affected by normal course spring weather break-up interruption, it is anticipated that the Company will capture further increases in efficiency and profit with these operations in future quarters.

OVERVIEW OF FINANCIAL RESULTS

During the third quarter ended January 31, 2015, the Company recorded revenue of $19,150,181, a 32% increase over the $14,500,262 in revenue recorded for the preceding quarter ended October 31, 2014. EBITDA for the third quarter was $5,093,399 compared with EBITDA of $2,850,494 in the second quarter, indicating positive cash flow contributions from our newly acquired assets.

The net loss for the second quarter amounted to $2,075,631, or $0.05 per common share, compared to net loss and comprehensive loss of $943,947, or $0.02 per common share, for the preceding quarter. The increase in net loss was principally due to the Company’s June 2014 acquisitions which added to the Company’s asset base and resulted in an increase in depreciation expenses. The Company may, by year end, adjust the allocation of depreciation expenses within the quarters of this fiscal year.

In the third quarter, the Company’s harvesting operations from its private timberlands and contract logging divisions represented a significant portion of the Company’s output. For the three months ended January 31, 2015, the Company harvested approximately 286,875 m3 of timber compared to 195,400 m3 of timber harvested in the preceding quarter ended October 31, 2014. During the quarter, the Company’s wood treatment operation was another important revenue and EBITDA contributor. The Company anticipates further growth in the near term from this division. Further, at the end of the quarter, the WoodEx sawmill saw significant improvement in production and increase in inventory and commenced operating at a profit.

Subject to the approval of the TSX Venture Exchange, the Company and GMP Securities L.P., on its own behalf and on behalf of a syndicate of underwriters including CIBC World Markets Inc., Mackie Research Capital Corporation and Dundee Securities Ltd., have agreed to amend the terms of the Company’s offering (the “Offering”) of 21,670,000 units of the Company (the “Units”) to provide that each Unit will now be comprised of one common share of the Company (a “Common Share”) and one common share purchase warrant (a “Warrant”) entitling the holder thereof to acquire an additional Common Share (a “Warrant Share”) at an exercise price of $0.75 per Warrant Share for a period of thirty-six (36) months following the closing of the Offering. Additionally, the terms of the Warrants shall provide that if, during the thirty-six (36) month period following the closing date of the Offering, the Company’s volume weighted-average share price for 20 consecutive trading days equals or exceeds $0.96, the Company shall have the right to give notice to holders of the Warrants that the Warrants will expire on the date that is thirty (30) days from the date of such notice. During the thirty (30) day period following notice, the holders of the Warrants will be able to exercise their Warrants in accordance with their terms.

For further information, please contact:

Brent Lokash, President
Tel: 1 604 428-1075
Email: brent.lokash@jemifibre.com

About Jemi Fibre

Jemi Fibre is a British Columbia based forest products company which trades on the TSX Venture Exchange under the symbol JFI. Jemi Fibre’s operations consist of a full service contract logging division, with operations in Mackenzie and Cranbrook, a sawmill located in Edgewater producing high value lumber products, a wood treatment facility in Cranbrook producing pressure treated posts and lumber for agricultural use, and private timberlands located in the Kootenay region.

Forward Looking Statements

Certain statements included herein constitute forward-looking statements. The words “expect”, “intend”, “anticipate”, “propose” and “may” and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, such risks, uncertainties and other factors set forth under “Risk Factors” in the Company’s current MD&A filed with the British Columbia Securities Commission. Forward-looking statements are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management teams of Jemi, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks and accordingly may not occur as described herein or at all. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.

The financial information included in this release also contains certain data that are not measures of performance under IFRS. For example, “EBITDA” and “EBITDA excluding specific non-cash items such as stock based compensation” are measures used by management to assess the operating and financial performance of the Company. We believe that EBITDA is a measure often used by investors to assess a company’s operating performance. EBITDA has limitations and you should not consider this item in isolation, or as a substitute for an analysis of our results as reported under IFRS. Because of these limitations, EBITDA should not be used as a substitute for net loss or cash flows from operating activities as determined in accordance with IFRS, nor is it necessarily indicative of whether or not cash flow will be sufficient to fund our cash requirements. In addition, our definitions of EBITDA may differ from those of other companies. Additional information relating to the Company is available on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

SOURCE: Jemi Fibre Corp.

ReleaseID: 427106