Conifex Timber (CFF.TO), up near 24% on last look, secured a loan of up to CA$30 million from the Canadian government, the company said on Friday.
The Large Enterprise Tariff Loan (LETL) has a seven-year term and is secured by substantially all of Conifex's property, a statement said. Conifex will also issue an as-yet undetermined number of share purchase warrants to Canada Enterprise Emergency Funding.
Funds will be used to reestablish normalized two-shift operations at Conifex's Mackenzie sawmill in British Columbia.
Conifex noted that its lumber lender will reimburse up to CA$11 million for capital expenditures that are designed to improve operating performance and EBITDA at the Mackenzie mill, the company said.
"As we previously indicated to our stakeholders, this financing, together with the continued support of our existing lenders, provides Conifex with critical financial liquidity as we work to strengthen our operations and position the company for a recovery," said Confex Chief Executive Officer Ken Shields.
Conifex shares were last seen up CA$0.02 at CA$0.11 on the Toronto Stock Exchange.
Price: $0.11, Change: $+0.02, Percent Change: +22.22%