A Vancouver company is getting into the forestry business in Colombia.
Prima Colombia Hardwood Inc., formerly known as Flagship Industries Inc., (TSX-V:FII), has completed its acquisition of REM Forest Products Inc., a Nova Scotia-based company focused in the international hardwood timber market.
Following the sale, Prima Colombia will have a timber license agreement to harvest more than a million cubic metres of hardwood from a 44,596 hectare region on the west coast of Colombia.
The company plans to increase the number of its timber licenses in the South American country and boost the amount of timber shipped over the next five years.
As part of the all-share deal, REM shareholders received 1.9 common shares in Prima Colombia for each REM share, resulting in the issuance of 130.2 million Prima Colombia shares. About 50 million Prima Colombia shares issued to key management has been placed in a performance escrow agreement and will be released based on completion of certain performance criteria.
Prima Colombia’s executives include Donald Hayes, president and CEO of the Hayes Group of Companies and chair of BC Ferries and the BC Ferry Authority, and Harold Hayes, senior vice-president of operations of the Hayes Group.
Prima Colombia’s shares begin trading today on the TSX Venture Exchange under the symbol PCT.