Vancouver, British Columbia, Canada, 07 July 2010 -- (Marketwire) -- Fortress Paper Ltd. (TSX:FTP) has completed its previously announced bought deal offering of 1,739,000 common shares of the company at a price of CAD 23.50 per offered share for gross proceeds of CAD 40,866,500. The offering was conducted by way of a short form prospectus dated 22 June 2010, through a syndicate of underwriters led by Dundee Securities Corporation and included Jennings Capital Inc., Raymond James Ltd., and TD Securities Inc.
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 paper machine number 1 at its Landqart mill in Switzerland, and for working capital.
The securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from registration requirements.
Fortress Paper is a leading international producer of security and other specialty papers and products. Fortress operates three mills: the Landqart mill in Switzerland, the Dresden mill in Germany, and the Fortress specialty cellulose mill in Quebec, Canada. Fortress Paper's security papers include banknote, passport, and visa papers, and its specialty papers include nonwoven wallpaper base products, and graphic and technical papers. Fortress Paper's pulp business includes northern bleached hardwood kraft produced at the Fortress specialty cellulose mill. The company plans to convert this capacity at the Fortress mill into dissolving pulp production along with the construction of a biomass based cogeneration plant.