Jemi Fibre Corp. is pleased to report that it has closed its previously announced bought deal private placement of 21,670,000 units of the Company, at a price of $0.60 per Unit, for aggregate gross proceeds to Jemi Fibre of $13,002,000. Each Unit is comprised of one common share of the Company and one common share purchase warrant entitling the holder thereof to acquire an additional Common 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.
The Offering was completed on a bought deal basis by a syndicate of underwriters led by GMP Securities L.P. and including CIBC World Markets Inc., Mackie Research Capital Corporation and Dundee Securities Ltd. (collectively, the “Underwriters”). In consideration for the services of the Underwriters in connection with the Offering, the Company paid the Underwriters a fee of $780,120 representing 6.0% of the gross proceeds from the Offering.
The net proceeds from the Offering will be used for debt reduction, future acquisitions, working capital and general corporate purposes.
Additionally, Jemi Fibre is pleased to announce that, in connection with the closing of the Offering, Mike Jenks, Chairman and CEO of Jemi Fibre, has exercised an aggregate of 8,333,333 common share purchase warrants at an exercise price of $0.32 per share.
The securities issued in connection with the Offering are subject to a hold period under applicable Canadian securities laws which will expire four months and one day from March 24, 2015. The Offering is subject to final acceptance by the TSX Venture Exchange.