GreenFirst Forest Products Inc. has entered into a strategic agreement with Mahogany Investors, LLC for the sale of its entitlement to refunds, including accrued interest, on duties paid for softwood lumber exported to the U.S. in 2021 and 2022.
The transaction, valued at approximately $17.5 million USD, also includes provisions for additional proceeds depending on the resolution of the ongoing trade dispute.
GreenFirst CEO Joel Fournier emphasized the strategic importance of the agreement, stating, “This agreement underscores our commitment to strengthening our financial foundation while maintaining focus on our core business operations. By monetizing these refund rights, we are unlocking value and enhancing our ability to pursue strategic initiatives.”
The proceeds, combined with funds from a recent rights offering, will support Phase I of GreenFirst’s strategic expenditures plan, aiming to position the company as the largest sawmill operator in Ontario and a top-tier lumber producer.
The duties in question stem from deposits totaling $60 million USD, made during GreenFirst’s ownership of six softwood lumber mills in Ontario and Quebec. While the company divested its Quebec assets in 2023, it retained the rights to any potential refunds tied to these deposits.
This transaction aligns with GreenFirst’s broader strategy to optimize its asset portfolio and reinforce its financial stability, enabling the company to focus on sustainable forest management and lumber production.
About GreenFirst
GreenFirst Forest Products is a leading Canadian lumber producer committed to sustainable forestry practices. Operating four sawmills in Ontario, the company manages over 6.1 million hectares of FSC®-certified public forestlands, producing eco-friendly building materials with significant environmental advantages.
