EACOM Closes $34.6 Million Best Efforts Private Placement

2011-04-20 | News / Press Releases

Montréal, Québec and Vancouver, British Columbia – EACOM Timber
Corporation (ETR: TSX-V) (“EACOM”, or the “Company”) is pleased to announce that it has
closed its previously announced best efforts private placement, sold by a syndicate of
agents led by Canaccord Genuity Corp., and including Dundee Securities Ltd. (collectively,
the “Agents”). The financing consisted of 69,122,500 common shares of the Company (the
“Common Shares”) sold at $0.50 per Common Share for gross proceeds of $34,561,250,
including the partial exercise of the Agents’ over-allotment option for 9,122,500 Common
Shares.

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.

 

About EACOM

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.
The TSX Venture Exchange has neither approved nor disapproved the content of this press
release. All director and officer appointments are subject to TSX Venture Exchange
approval.

 

Forward-Looking Statements

All statements in this news release that are not based on historical facts are “forwardlooking
statements.” While management has based any forward-looking statements
contained herein on its current expectations, the information on which such expectations
were based may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of risks, uncertainties,
and other factors, many of which are outside of our control that could cause actual results
to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions “Risk Factors”
of the Filing Statement dated January 8, 2010 and the current MD&A for EACOM Timber
Corporation on file with the Canadian Securities Commissions.

INVESTORS:

Marc Girard
Executive Vice-President and Chief Financial Officer
(514) 848-5133

MEDIA RELATIONS:

Frédéric Bérard
HKDP
(514) 917-1040


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