05:29 PM EST, 01/02/2025 (MT Newswires) -- Conifex Timber ( CFXTF ) after trade Thursday said it has amended its credit agreement with PenderFund Capital Management.

A statement noted the loan will continue for five years and is substantially on the same terms and interest rate, the company said.

"The additional borrowings will be used to fund a build-up in sawlog inventories to support our transition to a two-shift operation at our sawmill complex, effective Jan. 6," Conifex Chief Executive Ken Shields said.

Subject to stock exchange approval, Pender will receive up to about 5.9 million warrants, each allowing the purchase of one common share for $0.50 per warrant over five years. At the same time, Pender has agreed to cancel its existing 3.6 million warrants.

While the loan is outstanding, Pender will have the right to appoint one director to Conifex's board. The amended agreement also includes mandatory prepayment terms for Pender, including in the event of a major asset sale by Conifex, the company added.

CFF rose 0.015 or 5% to $0.31 today.