GreenFirst Provides Update on Plan to Spin-Out Kap Corporation

TORONTO--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) wishes to announce that at the special meeting of shareholders held earlier today, shareholders approved the proposed plan of arrangement that will result in the distribution of the outstanding shares of Kap Corporation to the GreenFirst shareholders on the basis of one common share of Kap Corporation for each one hundred common shares of GreenFirst held (the “Spin-out”). Shareholders holding approximately 79% of outstanding shares attended the meeting in person or by proxy. Shareholders holding 98,266,217 common shares, representing 77% of the shares, voted in favour of the Spin-out while shareholders holding 29,031,531 common shares, voted against the resolution. The next step will be obtaining final court approval to the Spin-out which is scheduled for October 1, 2024.

In addition, shareholders also approved authorizing the Board of Directors to implement certain consolidation transactions described in more detail in GreenFirst’s management information circular dated August 23, 2024. GreenFirst will issue a press release advising the market on the timing of these actions in due course.

“This represents a significant step for GreenFirst in advancing its strategy related to its sawmills and Kap Paper Inc. Upon completion of the Spin-out, each entity will be able to focus on its long-term growth and development,” said Joel Fournier, GreenFirst’s CEO. The Spin-out of Kap Corporation is a continuation of the decentralization and deconsolidation of the newsprint mill that was originally disclosed by GreenFirst in the Fall of 2023.

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.

For more information, please visit: www.greenfirst.ca