Fortress Paper Ltd. recently announced that it has completed its previously announced bought deal offering (the "Offering"), including the exercise in full of the underwriters' over-allotment option, resulting in aggregate gross proceeds of $57,548,587. The Offering was conducted by way of a short form prospectus dated February 3, 2011 through a syndicate of underwriters led by Raymond James Ltd. and included Dundee Securities Corporation, RBC Dominion Securities Inc., Cormark Securities Inc., TD Securities Inc. and Acumen Capital Finance Partners Limited, who purchased a total of 1,112,050 common shares of the Company at a price of $51.75 per share.
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 the construction of a high security facility adjacent to the Fortress Specialty Cellulose Mill which will house the Company's optical security material equipment recently acquired from the Bank of Canada, and for working capital and general corporate purposes.
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. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
