EACOM Timber Corporation
Montréal, Québec, and Vancouver, British Columbia, Canada, 10 April 2011 – EACOM Timber Corporation (ETR: TSX-V) is pleased to announce a private placement of 60,000,000 common shares for gross proceeds of CAD 30.0 million (the financing). Each common share will be priced at CAD 0.50. The financing will be sold on a commercially reasonable best efforts basis conducted by a syndicate of agents led by Canaccord Genuity Corporation and including Dundee Securities Corporation (the agents).
The company also has granted the agents an over-allotment option to sell up to an additional 10,000,000 common shares on the same terms and conditions as the financing. The over-allotment option is exercisable 48 hours before the closing of the financing.
"We are very pleased about this financing,” said Rick Doman, president and CEO of EACOM. “It demonstrates the strong support that EACOM has for its current and future projects." The net proceeds from the financing will be used for working capital and general corporate purposes, including for potential acquisitions.
The agents will receive a cash commission equal to 6.0% of the gross proceeds, and broker warrants in an amount equal to 6.0% of the number of common shares sold by the agents. The agents’ warrants expire 24 months after closing of the financing. All securities sold pursuant to the financing will be subject to a statutory four-month hold period.
Closing of the financing is scheduled for 20 April 2011, subject to the approval of the TSX Venture Exchange and the satisfaction of other customary closing conditions.
EACOM Timber Corporation is a TSX-V listed company. EACOM owns seven sawmills and an equity interest in an eighth sawmill, all located in eastern Canada, and related tenures. The mills are Timmins, Nairn Centre, Gogama, and Ear Falls in Ontario, and Val-d’Or, Ste-Marie, and Matagami in Quebec. The equity interest is in the Elk Lake sawmill located in Ontario. The sawmills in Ear Falls, Ontario, and Ste-Marie, Quebec, are currently idled. EACOM also owns one idle mill in Big River, Saskatchewan. EACOM also owns a remanufacturing facility and a 50% interest in an “I” joist plant.