GreenFirst Announces Release of Pension Surplus and $19 Million Backstop to Strengthen Liquidity

NORTH BAY, Ontario--(BUSINESS WIRE)--GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) today announced two key developments that strengthen its financial position and support ongoing operations:

Pension Surplus Distribution

GreenFirst has received regulatory approval from the Financial Services Regulatory Authority of Ontario ("FSRA") to distribute surplus assets from its closed defined benefit pension plan for Kapuskasing Organized Employees of GreenFirst Forest Products (QC) Inc. The plan was wound up on November 1, 2024, in a surplus position.

The surplus assets will be distributed to eligible members, with GreenFirst retaining the remaining estimated surplus of approximately $10.7 million, subject to final investment performance and plan wind-up expenses.

$19 Million Backstop on Standby Letters of Credit

GreenFirst has secured a $19 million backstop on its existing standby letters of credit from Export Development Canada (“EDC”) under EDC’s Account Performance Security Guarantee (“APSG”) program. The APSG program is designed to support eligible Canadian companies by providing guarantees to financial institutions in respect of standby letters of credit to help maintain access to working capital.

“We appreciate EDC’s support through the APSG program,” said Joël Fournier, Chief Executive Officer of GreenFirst. “This arrangement, together with the retained pension surplus, provides additional financial flexibility as we continue to manage our operations and serve our customers.”

These developments enhance GreenFirst’s liquidity, financial flexibility, and operational capacity, supporting ongoing operations and the execution of strategic initiatives.

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 6.1 million hectares of FSC® certified public Ontario forestlands (FSC®-C167905). The Company believes that responsible forest practices, coupled with the long-term green advantage of lumber, provides GreenFirst with significant cyclical and secular advantages in building products.