VANCOUVER, March 26, 2018 /CNW/ - Fortress Global Enterprises Inc. ("Fortress Global") (TSX:FGE) (OTCQX:FTPLF) 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.
A presentation related to this transaction is available under the "Investor Relations" section at www.fortressge.com or by sending a request to email@example.com.
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.
This press release contains certain forward-looking information that reflects the current views and/or expectations of Fortress Global with respect to its performance, business and future events, including statements regarding: Fortress Global's completion of additional agreements related to this transaction and the outcome of its financing applications and initiatives and the expected effects of the acquisition of S2G on the business of Fortress Global. The reader is cautioned that forward-looking information is not a guarantee of future performance and involves known and unknown risks, uncertainties, assumptions and other factors which are difficult to predict and that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Forward-looking information is based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which Fortress Global operates. Assumptions underlying Fortress Global's expectations regarding forward-looking information contained in this news release include, among others: Fortress Global's ability to complete the necessary financing to successfully implement its business plan in respect of the xylitol project on satisfactory terms; the success, profitability and other expected benefits of the xylitol project; the expected effects of the S2G acquisition on the business of Fortress Global; that the xylitol project will be economically viable and can be completed within the expected schedule and budget; and that the market conditions for xylitol will follow expected trends. Investors are cautioned that all forward-looking information involves risks and uncertainties including, without limitation: that Fortress Global will not secure the necessary financing to complete its business plan in respect of the xylitol project as planned or at all; that the xylitol project will not be successful or profitable and will not meet expected production capacities, or be completed within the expected timeframes and within the expected budget; that Fortress Global may experience unforeseen delays, financing difficulties or costs that will impact its projects, operations, financial performance and liquidity; and those risks relating to our reputation, competition, changes in the market, potential downturns in economic conditions, dependence on major customers, fluctuations in the price and supply of raw material, foreign exchange fluctuations, labour, regulatory requirements and other risk factors listed from time to time in Fortress Global's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on statements comprising forward-looking information, which are qualified in their entirety by this cautionary statement. Fortress Global does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking information, except as required by applicable securities law.
SOURCE Fortress Global Enterprises Inc.
For further information: about Fortress Global Enterprises, please visit us at www.fortressge.com or contact us at 604-904-2328 or firstname.lastname@example.org