GreenFirst Revisions Share Capital and Implements Consolidation

GreenFirst Extends Determination Date

GreenFirst Forest Products Inc. (TSX: GFP) has recently communicated significant updates that are essential for shareholders. The company has announced an extension on the Determination Date, which is now set to close at the end of business on October 11, 2024. This decision impacts the previously outlined Share Capital Amendments that were supposed to take effect on October 7, 2024.

Details on Substantive Consolidation

A key development from GreenFirst includes a move towards a substantive consolidation of its common shares. This consolidation entails a conversion rate of ten (10) pre-consolidation common shares for each single post-consolidation share. Such a consolidation ratio is designed to streamline the company’s share structure and is crucial for shareholders to understand.

Implications for Shareholders

Shareholders holding fewer than 1,000 common shares as of the Determination Date will receive cash consideration. This will be calculated based on the number of common shares they own, multiplied by $0.74, the last closing price before consolidation. For those with 1,000 or more common shares, their new share count post-consolidation will be determined by dividing their existing shares by the consolidation ratio of ten.

Fractional Shares Policy

In cases where the consolidation results in fractional shares, any fraction less than 0.5 will be canceled. Conversely, fractions of 0.5 or greater will be rounded up, ensuring that shareholders retain full shares where applicable.

Future Expectations and Updates

GreenFirst has committed to keeping shareholders informed. An update will be provided later this week regarding the expected trading date for the common shares on a post-consolidation basis. This transparency is crucial for maintaining shareholder confidence and engagement during this transitional period.

Instructions for Shareholders

Registered shareholders will soon receive letters of transmittal with guidance on surrendering their existing share certificates to Computershare Investor Services Inc. for their post-consolidation shares or, if they hold fewer than 1,000 shares, to receive cash consideration instead. These letters will clarify the steps needed to ensure smooth transactions.

Contacting Computershare

Shareholders are encouraged to reach out to Computershare at 1-800-564-6253 if they require further assistance with their share certificates. This service aims to ensure that all registered shareholders have the guidance they need during this consolidation process.

About GreenFirst Forest Products

GreenFirst is deeply committed to sustainable forest management and lumber production. The company operates four sawmills across areas abundant with natural resources, exceeding six million hectares of FSC certified forest lands. GreenFirst advocates for responsible forestry practices and recognizes the long-term benefits of lumber products.

Frequently Asked Questions

What is the purpose of the share consolidation?

The share consolidation aims to simplify the company's capital structure and enhance share value for shareholders.

When will the new shares start trading?

GreenFirst is expected to announce the trading date for the new shares soon, following the updates about the share consolidation.

How will the consolidation affect shareholder equity?

The consolidation will adjust the number of shares held by shareholders but should not affect the total equity held in terms of value.

What happens to fractional shares after consolidation?

Fractional shares less than 0.5 will be canceled, while those of 0.5 or more will be rounded up to one whole share.

How can I get more information about my shares?

Shareholders can contact Computershare or refer to the letters of transmittal that will be mailed to them for detailed guidance.

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