Fortress Paper Ltd. has reached an agreement with Investissement Québec ("IQ"), acting on behalf of the Government of Québec, to amend certain terms of the warrants to purchase up to 1 million common shares of the Company at an exercise price of $5.00 per common share issued to IQ on December 2, 2014 (the "Warrants").
The Warrants were amended to include a cashless exercise feature which allows IQ to acquire the lesser of: 125,000 common shares; and such number of common shares as determined by dividing the aggregate excess of the fair market value of the common shares subject to the Warrants over the aggregate exercise price of the Warrants by the current market price of the common shares of the Company (as determined in accordance with the Toronto Stock Exchange Company Manual.
The amendment did not affect IQ's right to exercise the Warrants by paying the $5.00 per share exercise price.
Subsequent to the warrant amendment, IQ fully exercised the Warrants and elected the cashless exercise option which will result in the issuance of 125,000 common shares of the Company.
Fortress Paper operates internationally in two distinct business segments: dissolving pulp and security paper products.
