Conifex Timber Inc. (TSX: CFF) announced on September 18, 2026 that it has secured a repayable loan of up to $30 million under the Government of Canada's Large Enterprise Tariff Loan program. The facility is designed to provide liquidity as Conifex navigates challenging lumber market conditions and works toward restarting normalised two-shift operations at its Mackenzie, British Columbia sawmill. Separately, Conifex's existing lumber lender has agreed to reimburse the company up to $11.0 million for capital expenditures aimed at improving operating performance and EBITDA at the Mackenzie mill.

Key Points

  • Conifex Timber Inc. (TSX: CFF) is a Vancouver-based forest products company with sawmilling, timber harvesting, and bioenergy operations in Mackenzie, BC
  • Conifex secured a Government of Canada LETL loan providing up to $30 million in repayable financing at a market-based interest rate over a seven-year term
  • An additional reimbursement facility of up to $11.0 million for capital expenditures at the Mackenzie mill was confirmed by the company's existing lumber lender
  • Warrant issuances to CEEFC and PenderFund remain subject to Toronto Stock Exchange approval

LETL Loan Structure and Security Terms

The Large Enterprise Tariff Loan facility carries a market-based interest rate and a seven-year term. The loan is secured by substantially all of Conifex's property, with portions of the facility ranking either pari passu with, or junior to, the company's existing secured lenders. CEO and Chair Ken Shields stated in the release that the financing, combined with continued support from existing lenders, provides Conifex with critical financial liquidity as it works to strengthen its operations and position itself for a lumber market recovery.

Capital Expenditure Reimbursement and Mackenzie Mill Restart Plans

Alongside the government loan, Conifex's existing lumber lender agreed to reimburse the company up to $11.0 million for capital expenditures intended to improve operating performance and EBITDA at the Mackenzie sawmill. President and COO Andrew McLellan noted in the announcement that the combined financing gives the company confidence to plan a restart and return people to work, producing renewable electricity for British Columbia and sustainable lumber for domestic and international markets. Conifex's lumber products are sold in the United States, Canadian, and Japanese markets.

Warrant Issuances Linked to the LETL Facility

In connection with the LETL facility, Conifex has agreed to issue common share purchase warrants to CEEFC, with the number of warrants, exercise price, and term to be set out in definitive documentation. Additionally, Conifex agreed to issue PenderFund up to 1,584,000 common share purchase warrants exercisable at $0.50 per warrant, expiring January 17, 2031. The company also agreed to extend the expiry of PenderFund's existing 4,320,000 warrants by one year to January 17, 2031. All warrant-related matters remain subject to Toronto Stock Exchange approval. The immediate share price impact was not clear from available public information.