GreenFirst Forest Announced Spin-Out of Kap Paper

SEATTLE (Scrap Monster): GreenFirst Forest Products Inc. announced its decision to complete a spin-out transaction of Kap Corporation. The spin-out transaction is expected to be completed by final quarter this year.

According to company press release, the completion of the transaction will see shares of Kap Corporation being held directly by the Greenfirst shareholders. A shareholder meeting will be held by GreenFirst on September 12, 2024, in which shareholders will be able to vote on the proposed transaction. The record date for shareholders entitled to vote at the meeting is fixed as August 8, 2024.

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The spin-out transaction will help GreenFirst to focus on its core business of lumber production. Furthermore, it will enable Kap to explore various possibilities that were not feasible under the original GreenFirst ownership structure. As a separate entity, Kap will have the freedom to consider potential financing alternatives and partnerships to foster its growth.

Joel Fournier, CEO, GreenFirst stated that the company is pleased to announce the spin-out. The strategic move will enable the company to fully concentrate on its core business. Kap Paper will continue to remain as a major consumer of its residuals, he added.