Vancouver, British Columbia, Canada 27 March 2019 -- Conifex Timber Inc. ("Conifex", "we", "our") (TSX: CFF) announced today that it has entered into a definitive purchase agreement with certain subsidiaries of Canwel Building Materials Group Ltd. ("CanWel") for the sale of Lignum Forest Products LLP ("Lignum"). The consideration for the transaction is approximately US$11.5 million, including approximately US$10.5 million for working capital. The estimated working capital is subject to customary post-closing adjustments.
Ken Shields, Conifex's President and CEO, stated: "As we worked over the past several months capturing the synergies and integrating our two acquired US South mills into Conifex, it became apparent to us that Lignum's strength in lumber marketing and distribution would be well positioned for the future under the guidance of a company with a good reputation and with a single focus on marketing forest products."
Mr. Shields continued: "During our period of ownership, Lignum employees worked hard and compiled a consistent record of profitability, and we thank the employees of Lignum for their strong performance."
The transaction is expected to close on April 1, 2019, subject to customary closing conditions.
About Conifex Timber Inc.
Conifex and its subsidiaries' primary business currently includes timber harvesting, reforestation, forest management, sawmilling logs into lumber and wood chips, and value added lumber finishing and distribution. Conifex's lumber products are sold in the United States, Chinese, Canadian and Japanese markets. Conifex has expanded its operations to include bioenergy production following the commencement of commercial operations of its power generation facility at Mackenzie, BC.