VANCOUVER, BC, March 26, 2018 (CNW) -Fortress Global Enterprises Inc. ("Fortress Global") is pleased to announce, further to its news release of March 15, 2018, the successful completion of its acquisition of S2G Biochemicals Inc. ("S2G").
The S2G acquisition advances Fortress Global's strategy to grow revenues and profitability of its Fortress Specialty Cellulose ("FSC") mill in Thurso, Québec through the production of valuable bioproducts. Fortress Global expects the conversion of C5 sugars into xylitol will reduce the load on the FSC mill's recovery boiler, optimize its wood fibre use, and diversify the product portfolio into a new high margin business. Funding support for this major initiative is being secured through various non-dilutive sources including federal and provincial grants, other non-recourse financing, and consortium partners. Fortress Global expects to provide further updates in this regard in the coming months.
Chadwick Wasilenkoff, President and Chief Executive Officer of Fortress Global, commented: "We are excited to close the acquisition of S2G, a key part of our efforts to establish the xylitol demonstration plant at our FSC mill. We have a talented team in place with the expertise required to advance our objective of becoming a global low-cost producer of xylitol. Our FSC vision is to become a successful biorefinery, efficiently producing dissolving pulp while adding sustainable and valuable bioproducts such as xylitol that will transform our mill into a highly profitable enterprise and lead the way for the forest industry."
Pursuant to the share purchase agreement between Fortress Global, S2G, and S2G's shareholders, Fortress Global has acquired all of the issued and outstanding common shares of S2G for a purchase price of $2,500,000, which purchase price has been satisfied through the issuance by Fortress Global of 666,652 of its common shares to S2G's shareholders at a deemed price of $3.75 per share.
About Fortress Global Enterprises
Fortress Global Enterprises operates its dissolving pulp business at the Fortress Specialty Cellulose Mill located in Canada. Fortress Global Enterprises also operates in the renewable energy generation sector through the Fortress Specialty Cellulose Mill's cogeneration facility, and plans to establish a demonstration plant for the future production of xylitol.