GreenFirst Forest Products to Sell Softwood Lumber Duty Refund Rights for $17.5M

SEATTLE (Scrap Monster): GreenFirst Forest Products is selling its softwood lumber duty refund rights to Mahogany Investors LLC for $17.5 million.

The Canadian lumber producer said the deal includes the potential for additional proceeds based on the timing and resolution of the ongoing trade dispute.

Chief Executive Joel Fournier said the agreement represents the company's commitment to strengthening its financial foundation while maintaining focus on its core businesses.

"The recent rights offering, combined with today's transaction, will provide enough liquidity to execute Phase I of our strategic expenditures plan to become the largest sawyer in Ontario and get the company closer to becoming a top quartile lumber producer," he added.

GreenFirst previously owned six softwood lumber mills in Ontario and Quebec, and made duties deposits of about $60 million in connection with lumber exports between 2021 and 2022. While the company sold the mills 2023, it retained all rights and obligations to the duties deposits.

 Courtesy: www.marketwatch.com