DGAP-News: Fortress Paper Announces $40,866,500 Bought Deal Offering
(firmenpresse) - Fortress Paper Ltd. / Capital Increase
14.06.2010 14:15
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Fortress Paper Announces $40,866,500 Bought Deal Offering
VANCOUVER, BRITISH COLUMBIA - June 8, 2010
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
Fortress Paper Ltd. ('Fortress Paper' or the 'Company') (TSX:FTP),
announces that it has entered into a financing agreement with a syndicate
of underwriters led by Dundee Securities Corporation and including Jennings
Capital Inc., Raymond James Ltd., and TD Securities Inc. (the
'Underwriters'). Pursuant to the agreement, the Underwriters have agreed to
purchase, on a bought deal basis, 1,739,000 common shares ('Shares') of the
Company priced at $23.50 per Share (the 'Offering Price'), for total gross
proceeds of $40,866,500 (the 'Offering').
The Company has agreed to grant the Underwriters an over-allotment option
to purchase up to an additional 260,850 common shares of the Company at the
Offering Price, exercisable in whole or in part, at any time on or prior to
the date that is 30 days following the closing of the Offering. If the
over-allotment option is exercised in full, the aggregate gross proceeds of
the Offering will be $46,996,475.
Fortress Paper intends to use the net proceeds of the offering to finance
certain capital expenditures relating to its Fortress Specialty Cellulose
Mill in Thurso, Quebec and its rebuild of papermachine number 1 at its
Landqart Mill, and for working capital and general corporate purposes.
The Offering is expected to close on or about July 9, 2010 and is subject
to certain customary conditions including, but not limited to, the receipt
of all necessary regulatory and stock exchange approvals, including the
approval of the Toronto Stock Exchange and the applicable securities
regulatory authorities. The offering will be made in Canada by way of a
short form prospectus and may be made in jurisdictions outside of Canada on
a private placement basis pursuant to prospectus and registration
exemptions in accordance with applicable laws. The Company intends to file
a preliminary short form prospectus relating to the offering with the
applicable securities regulatory authorities in Canada in due course.
The securities being offered have not been, nor will they be, registered
under the United States Securities Act of 1933, as amended, or any state
securities laws and may not be offered or sold in the United States or to,
or for the account or benefit of, U.S. persons absent registration or an
applicable exemption from registration requirements. This press release
shall not constitute an offer to sell or the solicitation of an offer to
buy any of the securities in the United States.
About Fortress Paper
Fortress Paper is a leading international producer of security and other
specialty papers and products. Fortress Paper operates three mills, the
Landqart Mill located in Switzerland, the Dresden Mill located in Germany
and the Fortress Specialty Cellulose Mill located in Quebec, Canada.
Fortress Paper's security papers include banknote, passport and visa papers
and its specialty papers include non-woven wallpaper base products, and
graphic and technicalpapers. Fortress Paper's pulp business will include
NBHK with the re-start of the Fortress Specialty Cellulose Mill with plans
to convert this capacity into dissolving pulp production along with the
construction of a biomass based cogeneration plant.
This press release contains certain forward-looking statements that reflect
the current views and/or expectations of Fortress Paper with respect to its
performance, business and future events, including statements regarding
Fortress Paper's intention to conduct a public offering of its common
shares; the timing and completion of the intended offering; and the
intended use of proceeds. Forward-looking statements are based on the
then-current expectations, beliefs, assumptions, estimates and forecasts
about the business and the industry and markets in which the Corporation
operates, including assumptions relating to the timing of and the
Corporation's ability to successfully complete the offering; that all
approvals for the offering will be received; and that there will be no
events that trigger termination rights under the agreement with the
Underwriters. Forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and assumptions which are
difficult to predict. Investors are cautioned that all forward-looking
statements involve risks and uncertainties including, without limitation,
that the Corporation will be unable to receive approvals required for the
offering; that the offering will not be completed in the expected timeframe
or at all; and those risks relating to changes in the market, potential
downturns in economic conditions, fluctuations in the price and supply of
raw materials, foreign exchange fluctuations, labour relations, regulatory
requirements, reputation, competition, dependence on major customers, and
other risk factors listed from time to time in the Corporation's public
filings. These risks, as well as others, could cause actual results and
events to vary significantly. Accordingly, readers should not place undue
reliance on forward-looking statements and information, which are qualified
in their entirety by this cautionary statement. Fortress Paper does not
undertake any obligations to release publicly any revisions for updating
any voluntary forward-looking statements, except as required by applicable
securities law.
For more information, please contact
Fortress Paper Ltd.
Chadwick Wasilenkoff
604-904-2328
info(at)fortresspaper.com
www.fortresspaper.com
14.06.2010 14:15 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Datum: 14.06.2010 - 14:15 Uhr
Sprache: Deutsch
News-ID 22347
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