VANCOUVER, British Columbia, March 27, 2019 (GLOBE NEWSWIRE) -- 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.
For further information, please contact:
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.
Forward-Looking Statements
Certain statements in this news release may constitute “forward-looking statements”. Forward-looking statements
are statements that address or discuss activities, events or developments that Conifex expects or anticipates may occur in the
future and include statements regarding the expected closing date of the transaction. When used in this news release, words such as
“estimates”, “expects”, “plans”, “anticipates”, “projects”, “will”, “believes”, “intends” “should”, “could”, “may” and other
similar terminology are intended to identify such forward-looking statements. Forward-looking statements reflect the current
expectations and beliefs of Conifex's management. Because forward-looking statements involve known and unknown risks, uncertainties
and other factors, actual results, performance or achievements of Conifex and its industry may be materially different from those
implied by such forward-looking statements. Forward-looking statements involve significant uncertainties, should not be read as a
guarantee of future performance or results, and will not necessarily be an accurate indication of whether or not such results will
be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking
statements, including lumber price volatility, lumber market conditions, log costs, log quality and availability and other risks
described in Conifex's 2017 AIF, available on SEDAR at www.sedar.com. These risks, as well as others, could cause actual results and events to vary significantly.
Accordingly, readers should exercise caution in relying upon forward-looking statements and Conifex undertakes no obligation to
publicly revise them to reflect subsequent events or circumstances, except as required by law.