JACKSONVILLE, Fla. (News release) -- Rayonier Advanced Materials Inc. announced that it has completed its previously announced sale of its lumber and newsprint assets (the "Purchased Assets") to GreenFirst Forest Products Inc. ("GreenFirst"), a Canadian lumber company, for a total purchase price of approximately US$235 million, subject to final adjustments.
The total purchase price is payable approximately 85 percent in cash and 15 percent of common shares in GreenFirst (the "Green First Shares"), which is subject to a six-month holding period. Notably, RYAM retained all the cash generated by the Purchased Assets prior to closing plus rights and obligations related to all softwood lumber duties, including any potential interest on the duties, previously paid to the U.S. Department of Commerce of approximately $110 million. As previously disclosed, the proceeds will be used to repay debt and make strategic capital investments focused on the High Purity Cellulose segment.
As mentioned above, Rayonier A.M. Canada G.P., a wholly-owned subsidiary of the company, was issued 28,684,433 GreenFirst Shares at a deemed price of approximately $1.19 per share representing an aggregate amount of approximately $34,134,475. Prior to the transaction, Rayonier A.M. Canada G.P., did not own or have control or direction over any GreenFirst Shares.
Following the transaction, Rayonier A.M. Canada G.P., beneficially owns 28,684,433 GreenFirst Shares representing approximately 16.2% of the issued and outstanding common shares of GreenFirst. Neither Rayonier A.M. Canada G.P. nor the Company does not have any current plans or future intentions to buy or sell further GreenFirst Shares, to solicit proxies or to otherwise participate in any significant transaction involving GreenFirst. Rayonier A.M. Canada G.P. intends to review its investment on a continuing basis and may in the future purchase or sell securities or otherwise engage in activities related to GreenFirst.