Canfor Corporation completes acquisition of Canfor Pulp

Executive Summary

• Canfor Corp completed a court‑approved arrangement acquiring 100% of the outstanding shares of Canfor Pulp Products Inc. (“Canfor Pulp”).
• Consideration paid to former shareholders consisted of $3,996,572 in cash and 912,217 Canfor Corp common shares (0.0425 CFP share per Canfor Pulp share).
• Post‑closing, Canfor Corp and its affiliates now beneficially own all 65,233,559 Canfor Pulp shares, representing full ownership of the subsidiary.

Key Details

• Transaction Structure: Court‑approved plan of arrangement under the BC Business Corporations Act.
• Consideration Options for Former Shareholders:
• 0.0425 Canfor Corp common share per Canfor Pulp share or
• $0.50 cash per Canfor Pulp share.
• Aggregate Consideration Paid:
• Cash: $3,996,572
• Shares issued: 912,217 Canfor Corp shares (equivalent to the share consideration).
• Ownership Before Closing: Canfor Corp and affiliates already owned ~54.8% (35,776,483 shares) of Canfor Pulp.
• Shares Acquired in Arrangement: 29,457,076 Canfor Pulp shares (~45.2%).
• Resulting Ownership: 100% of Canfor Pulp’s issued and outstanding shares (65,233,559 shares).
• Delisting: Canfor Pulp shares to be delisted from the Toronto Stock Exchange as of market close on 2026‑03‑18.
• Reporting Status: Canfor Corp will seek an order for Canfor Pulp to cease being a reporting issuer under Canadian securities laws.
• Early Warning Disclosure: An early warning report will be filed with Canadian securities regulators; contact Pat Elliott (CFO & Corporate Secretary) for the report.
• Shareholder Action Required: Former shareholders must return signed letters of transmittal/election forms and supporting documents to TSX Trust Company to receive their elected consideration.

Notable Quotes

(No direct quotes were provided in the release.)