Fortress Completes Sale of Fortress Optical Features
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Fortress Paper Ltd., Vancouver, B.C., Canada, is pleased to announce that it has successfully completed the sale of Fortress Optical Features (FOF) to Nanotech Security Corp., previously announced on August 26 of this year. The purchase price for the sale is up to $17,500,000, subject to a post-closing working capital adjustment and earn-out in respect of 3,000,000 common shares of Nanotech, which shares were issued at a deemed price of $1.50 per share, and will be held in escrow to be released to the company upon the achievement of certain business milestones by FOF and/or Nanotech over a five year period.
With the sale of FOF, Fortress Paper will no longer manufacture optically variable thin film material.
Fortress Paper operates in two business segments—dissolving pulp and security paper products. The company operates its dissolving pulp business at the Fortress Specialty Cellulose Mill in Canada, which has expanded into the renewable energy generation sector with the construction of a cogeneration facility and the production of NBHK pulp. The company operates its security paper products business at the Landqart Mill in Switzerland, where it produces banknote, passport, visa, and other brand protection and security papers.
