GreenFirst Announces $24 Million Financing for Kap Paper

GreenFirst Forest Products Inc. (“GreenFirst” or the “Company”) announces Kap Paper Inc. (“Kap Paper”), a wholly owned subsidiary of GreenFirst, has entered into a loan agreement with a third party establishing a non-revolving term loan facility of up to $24 million to support its paper mill operations in the town of Kapuskasing. The loan is to be used for general working capital purposes.

“The financing will afford us the opportunity to move forward our long-term strategy for Kap Paper, ensuring its competitiveness,” said Terry Skiffington, Kap Paper’s CEO.

Kap Paper remains focused on mill operations and has made considerable improvement on the operational challenges faced in the last two reported quarters, some of which were caused by external events. Kap Paper looks to build on this momentum to further improve operational efficiencies in what has been a tough pricing environment for paper products.

Kap Paper is the only pulp and paper mill operating in Eastern Ontario. As such, its operations are imperative to help mitigate challenges related to diminishing chip consumption, which is jeopardizing sawmill operations in Ontario.

“The Company’s sawmills in Kapuskasing, Hearst and Cochrane utilize Kap Paper’s operations as an outlet for their chips.  The financial support is integral to the Company’s long-term strategy,” said Joel Fournier, GreenFirst’s CEO.

About GreenFirst

GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets proudly operating over six million hectares of FSC® certified public Ontario forest lands (FSC®-C167905). The Company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provide GreenFirst with significant cyclical and secular advantages in building products.

Source: GreenFirst Forest Products Inc.