GreenFirst Announces Profitable Fourth Quarter of 2021

GreenFirst Forest Products Inc. (TSX: GFP) (“GreenFirst” or the “Company”) filed its audited consolidated financial statements and notes for the year ended December 31, 2021 (“Financial Statements”) and the related Management Discussion and Analysis (“MD&A”) and Annual Information Form (“AIF”) which are available on SEDAR at All amounts are in thousands of Canadian dollars unless indicated otherwise.

Fourth Quarter of 2021 Highlights
*The fourth quarter of 2021 (“Q4 2021”) was the Company’s first full quarter operating its newly acquired forest products business
**Q4 2021 Adjusted EBITDA of $18.4 million (see, Reconciliation of Adjusted EBITDA)
**Q4 2021 net earnings of $8.0 million or $0.04 earning per share
*Lumber pricing improved in Q4 2021 and into 2022 with continued volatility expected
*Made significant strides in reducing reliance on transitional services arrangement with key hires in human resources, IT and accounting
*Asset backed revolving loan facility of $65.0 million was undrawn at December 31, 2021 and has remained undrawn at March 23, 2022. Cash from operations has funded the seasonal log inventory build-up
*Invested in Boreal Carbon Corporation, an entity focused on acquiring and managing forestry projects in North America to generate carbon credits

“We reached profitability in Q4 and have successfully integrated the acquired operating mills. As cash flow permits, we intendto make strategic capital investments with the goal to reduce the cost of production and increase our production capacity” said Rick Doman, CEO of GreenFirst. “We are also committed to being an employer of choice and for each of our mills to be an integral part of their community.”

Acquisition of Sawmills and Paper Mill
On August 28, 2021, the Company acquired six sawmills and one paper mill from Rayonier Advanced Materials (the “Rayonier Asset Acquisition”) for aggregate consideration of $294.1 million. The Company has measured and recorded the identifiable assets acquired and the liabilities assumed at management’s estimates of their acquisition-date fair values. As the acquisition is within the measurement period, the Company and its external valuation experts are still assessing acquisition date fair value adjustments, including fair values of property, plant and equipment and related depreciation charges, leases and estimated final purchase price adjustments related to inventory and other items.
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