Solenis to Increase Prices in the Americas Across All Product Lines

Effective with shipments on or after May 20, 2018, Navigator North America will be increasing prices by 5% to 7% for: Navigator Premium Inkjet, Soporset Premium Opaque Offset (Text & Cover & Digital) in sheets and sSheeter rolls and all cut-size office papers including Navigator, Pioneer and Discovery. Also implementing a freight surcharge of $2.00/cwt for shipments to CO, NM, OR, WA, NV and AZ and a $4.00/cwt freight surcharge for shipments to ID, UT, WY, MT, SD and ND.

Third Quarter of 2022 Highlights *Third quarter 2022 (“Q3 2022”) net loss was $23.3 million or a $0.13 loss per share (diluted), compared to net earnings of $30.7 million or $0.16 per share in the second quarter of 2022 (“Q2 2022”). This quarter marked the one-year point for the Company operating its acquired forest- products assets. *Lumber continued to experience price volatility in Q3 2022, with an average selling price of $780/ mfbm compared to $1,255/mfbm in Q2 2022. Steeply rising interest rates and inflation reduced demand for lumber products from the second quarter onward, and remain a concern impacting US housing starts and homebuilders’ confidence. *On September 23, 2022, the Company entered into a credit agreement with a tier-1 Canadian bank for up to $140.0 million consisting of a term loan of $15.0 million and an asset-backed revolving credit facility of up to $125.0 million (collectively, the “Credit Facility”). This refinancing replaced a high yield secured term loan (US$87.3 million outstanding at extinguishment)and a $65.0 million asset-backed loan facility (undrawn at time of extinguishment). *On November 7, 2022, the Company announced the sale of its 203,000 acres of private forest land south of Kapuskasing, Ontario, to a third party for cash proceeds of $49.2 million.

The unfolding of the past several months has led to more unpredictability than any of us could have imagined. Stay-at-home orders, social distancing guidelines and consumer panic buying have created major irregularities in tissue and towel market dynamics and consumption patterns. These challenges also present a great opportunity to help tissue and towel producers adapt and respond to these sudden changes. As consumers around the world actively stockpiled supplies and household staple items, tissue makers were pushed to maximize production. In some countries, bath tissue sales increased by more than 50% during the early months of the pandemic. Though machine utilization rates spiked to nearly 100%, there were still difficulties meeting demand. In the wake of the global pandemic, there is a renewed emphasis on hand hygiene that has resulted in more hand washing and hand drying occasions. Many establishments are also replacing hot and jet air dryers with paper towel dispensers in public restrooms. In addition, experts recommend cleaning and disinfecting high-touch surfaces at least once a day to minimize the risk of COVID-19 transmission via surface contact. All of these trends are driving an increase in paper towel usage and pushing manufacturers to enhance their product requirements.