GreenFirst Announces Plan to Spin-Out Kap Corporation
The Spin-out of Kap is part of the natural progression of the decentralization and deconsolidation of the newsprint mill that was originally disclosed by GreenFirst in the Fall of 2023. The Spin-out will enable GreenFirst to focus on its core business of being a pure-play lumber producer, offering shareholders a stake in any future upside from the development of Kap. Under the new structure, Kap will be able to explore numerous possibilities that were not feasible under the original GreenFirst ownership structure. As a separate company, Kap will consider independent financing alternatives and partnerships in the future.
“We have made notable strides this year by improving operational performance and lowering our manufacturing costs. With these changes, we can now focus on developing the next evolution of Kap Paper, which is to produce various forms of green energy by efficiently utilizing sawmill residuals and forest biomass,” said
“We are pleased to announce the Spin-out, marking the culmination of the initiatives launched last year. This strategic move enables us to fully concentrate on our core business. Kap Paper remains crucial as a major consumer of our residuals,” said
For more information, please visit: www.greenfirst.ca
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