Vancouver, British Columbia, Canada 01 June 2015 -- (Newsfile Corp.) - Jemi Fibre Corp. (TSXV: JFI) ("Jemi Fibre" or the "Company") is pleased to announce it has completed the acquisition of Aallcann Wood Suppliers Inc. ("Aallcann") as previously announced on March 11, 2015 for $1.62 million in cash.
Aallcann is a post peeling and treatment operation based in Prince Albert, Saskatchewan that produces treated timber products for agricultural markets. Its treatment facility is situated on approximately 180 acres of land and it holds a license for 36,000 cubic meters of Crown annual allowable cut.
Mike Jenks, Chairman & CEO, commented "Aallcann is in line with our strategy of acquiring and adding value to underutilized assets, and has similar capacity to our existing high-margin Kootenay wood preserving facility. Since March 2015, we have worked with Aallcann to improve operations, resulting in a 150% increase in monthly production".
The Company expects that the Aallcann acquisition will approximately double its wood preserving revenues to over $25 million annually.
In addition, the Company has extended its logging operations into Saskatchewan to service Aallcann and other wood processing operations. The Company anticipates harvesting up to 160,000 m3 of timber in Saskatchewan over the next 12 months.
In light of the accretive nature of the Aallcann acquisition, and the Company's recently announced intention to acquire L&M Wood Products, Jemi Fibre anticipates updating its previously disclosed financial targets.
Mr. Jenks concluded, "We anticipate completing additional accretive acquisitions in the near future, to transition to a higher proportion of earnings from value-added manufacturing operations and provide further geographic diversification."
About Jemi Fibre
Jemi Fibre is a Western Canadian based forest products company which trades on the TSX Venture Exchange under the symbol JFI. Jemi Fibre's operations consist private timberlands and Crown forest licenses, a full service contract logging division, a sawmill producing high value lumber products and wood treatment facilities producing posts and lumber for agricultural use.
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.
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