CanFibre Completes US$120 Million Financing and Begins Construction of North America's First Urban Panel Board Plant.TORONTO--(BUSINESS WIRE)--July 21, 1997--The CanFibre Group L(Canadian Dealing Network Canadian Dealing Network (CDN) The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Trading System (COATS), the CDN became a subsidiary of the Toronto Stock Exchange in 1991. CFGL CFGL Community Foundation of Greater Lakeland (Lakeland, FL) CFGL Configuration List .) The CanFibre Group Ltd. (CanFibre) (CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. : CFGL) is proud to announce that it has completed financing for its Riverside, CA Medium Density Fiberboard fi·ber·board n. A building material composed of wood chips or plant fibers bonded together and compressed into rigid sheets. Noun 1. (MDF (1) (Main Distribution Frame) A wiring rack that connects outside lines with internal lines. It is used to connect public or private lines coming into the building to internal networks. ) manufacturing facility. CanFibre received US$120.5 million in cash on financial closing which occurred July 16, 1997 in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY. The facility was funded through US$85 million of non-recourse bonds underwritten by Merrill Lynch & Co. of New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. ; US$15 million of non-recourse subordinated debt purchased by Enron Capital and Trade Resources Corp. (ECT ECT electroconvulsive therapy. ECT abbr. electroconvulsive therapy ECT Electroconvulsive therapy sometimes is used to treat depression or mania when pharmaceutical treatment fails. ) of Houston, Texas; US$3.5 million in preference shares issued by CanFibre of Riverside to project participants and US$17 million of equity provided by CanFibre. The financial structure results in CanFibre retaining 100 percent ownership and control of the facility in California. The non- recourse nature of the debt is a further benefit to CanFibre in that the debt is secured only by the assets of CanFibre of Riverside, Inc. with no direct liability to CanFibre Group Ltd. CanFibre raised its required equity contribution from its controlling shareholder, Kafus Capital Corporation (Kafus), who in turn simultaneously closed a US$21 million private placement with ECT. Kafus placed US$19 million into CanFibre through the purchase of convertible preference shares as originally announced July 2, 1997 and as a result will now own approximately 90 percent of CanFibre. "CanFibre's Riverside plant is North America's first urban panel board plant totally unreliant upon the cutting of trees" said CanFibre President, Christopher D. Carl. Each year the facility will produce 70 million square feet of a high grade wood panel product called medium density fiberboard or MDF, commonly used in the manufacture of fine furniture, moldings and cabinets. "A facility of this size would normally consume over 3000 acres of forest each year, but instead will harvest 155,000 tons of urban waste wood now destined des·tine tr.v. des·tined, des·tin·ing, des·tines 1. To determine beforehand; preordain: a foolish scheme destined to fail; a film destined to become a classic. 2. for landfills," said Mr. Carl. "Our plan is to repeat this facility six or seven times throughout the U.S.and Canada, beginning with Lackawanna, NY. near Buffalo, hopefully before year end." The facility will take 18 months to construct and has taken five years to develop. "CanFibre is truely a cinderella story of a small Canadian development company, overcoming major obstacles in the application of commercially unproven technology, while still maintaining 100 percent of plant ownership for shareholders," said Mr. Carl. He credits CanFibre's success to three factors: teamwork, persistence and the historic support of its parent company, Kafus. CanFibre Group trades on the Canadian Dealing Network under the symbol CFGL. Shares Outstanding: 7.2 million -0- The Canadian Dealing Network neither approves or disapproves the contents of this release. CONTACT: The CanFibre Group Ltd., 604/685-2430 or 1-800-661-0288 Toll Free 604/685-2426 (FAX) http://www.kafus.com e-mail: canfibre@cyberstore.ca |
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