Canfor completes acquisition of Canfor Pulp

Executive Summary

• Canfor Corp. has successfully closed the previously announced transaction to acquire all remaining issued and outstanding common shares of Canfor Pulp Products Inc. not already owned by Canfor Corp. and its affiliates.
• The transaction was executed via a court-approved plan of arrangement under the Business Corporations Act (British Columbia), resulting in Canfor Corp. achieving 100% ownership of Canfor Pulp.
• As a result of the acquisition, Canfor Pulp shares are expected to be delisted from the Toronto Stock Exchange (TSX) as of the close of market on March 18, 2026, and Canfor Pulp intends to cease being a reporting issuer under Canadian securities laws.

Key Details

• Transaction Structure: Court-approved plan of arrangement under the Business Corporations Act (British Columbia).
• Shareholder Consideration Options: Former holders of Canfor Pulp shares had the option to receive:
  • 0.0425 of a common share in the capital of Canfor Corp. per Canfor Pulp share; OR
  • $0.50 CAD in cash per Canfor Pulp share.
• Ownership Change:
  • Prior to closing, Canfor Corp. and affiliates beneficially owned 35,776,483 Canfor Pulp shares (approx. 54.8% of outstanding shares).
  • Canfor Corp. acquired an additional 29,457,076 Canfor Pulp shares (approx. 45.2% of issued and outstanding shares).
  • Post-closing, Canfor Corp. and affiliates beneficially own 65,233,559 Canfor Pulp shares, representing 100% of the issued and outstanding shares.
• Total Consideration Paid:
  • Cash: $3,996,572 CAD.
  • Equity: 912,217 Canfor Corp. common shares.
• Delisting and Regulatory Status:
  • Delisting from the Toronto Stock Exchange expected as of the close of market on March 18, 2026.
  • Canfor Pulp intends to apply for an order to cease being a reporting issuer under applicable Canadian securities laws.
• Shareholder Instructions: Registered holders must sign and return letters of transmittal and election forms to TSX Trust Company to receive their elected consideration. Intermediary holders must contact their respective brokers or investment dealers.

Notable Quotes

• None provided in the text.