UFP Industries: GreenFirst’s Strategic Spin-out of KapCorp for Sustainable Growth

GreenFirst Forest Products and KapCorp: A Strategic Spin-out for Sustainable Growth

GreenFirst Forest Products Inc. announces the successful completion of a Plan of Arrangement that facilitates the distribution of shares from its subsidiary, Kap Corporation (KapCorp), to GreenFirst shareholders. This strategic move allows GreenFirst shareholders to receive one common share of KapCorp for every ten shares of GreenFirst they hold, effective November 7, 2024. Following the Spin-out, GreenFirst’s shares will continue to trade under the symbol “GFP,” albeit with a new CUSIP number (39526C106). Importantly, KapCorp will not be listed on any stock exchange, marking a significant transition for both entities.

This Spin-out reflects a broader commitment to sustainability and innovation within the recycling industry. As part of this reorganization, KapCorp has appointed Doug Crawford to its Board of Directors, effective November 1, 2024. Mr. Crawford brings over 15 years of extensive experience in the recycling sector, having previously served as the Senior Vice-President at American Iron and Metal, where he successfully managed a large workforce and executed numerous acquisitions. His leadership has expanded the Kenny U-Pull automotive recycling business significantly and developed one of Canada’s largest catalytic converter recycling operations. This appointment is seen as a strategic advantage for KapCorp, reinforcing its focus on sustainable practices and enhancing its leadership capabilities.

KapCorp's CEO, Terry Skiffington, emphasizes the value of Crawford’s diverse skill set in sales, marketing, and heavy manufacturing, which will undoubtedly contribute to the company's strategic objectives. This leadership change is not just a response to the evolving recycling landscape but a proactive step toward positioning KapCorp as a leader in sustainable practices within the industry. By reinforcing its commitment to environmental stewardship and innovative recycling solutions, KapCorp aims to solidify its standing and drive future growth.

In addition to these developments, GreenFirst is set to conduct a conference call on November 13, 2024, to present its financial results for the third quarter of 2024. This call will provide insights into the company's performance and strategic direction following the Spin-out. GreenFirst remains dedicated to sustainable forest management, operating across extensive certified public forestlands in Ontario, and prioritizing responsible forestry practices that align with its overarching commitment to sustainability in the building products sector.