Three New Directors Elected at the GreenFirst AGM

For the first quarter ended 31 March 2021 Lecta had revenue of €270.8 million versus €316.6 million in the first quarter ended 31 March 2020, a decrease of €45.8 million or -15%. This decrease was essentially attributable to COVID-19 pandemic: • Lower sales of CWF, Specialties and Purchased Products of €46.9 million or -16%, from €299.3 million in 1Q2020 to €252.4 million in 1Q2021, resulting from lower sales volumes of 35,100 metric tonnes or -12%, with 264,900 metric tonnes in 1Q2021 vs 300,000 metric tonnes in 1Q2020, and a decrease in average net sales price of 45€/t or -4.5%, with 953€/t in 1Q2021 vs 998€/t in 1Q2020; and • Higher sales of energy of €1.1 million or +6.5%, from €17.3 million in 1Q2020 to €18.4 million in 1Q2021, resulting from lower sales volumes of 19,400 MWh or -6%, with 290,300 MWh in 1Q2021 vs 309,700 MWh in 1Q2020, and an increase in average net sales price of 8€/MWh or +14%, with 63€/MWh in 1Q2021 vs 56€/ MWh in 1Q2020. EBITDA decreased by €14.7 million, or -61%, from €24.2 million in 1Q2020 to €9.5 million in 1Q2021. This decrease was essentially due to lower sales of paper in volume. It was also due to lower sales prices, lower margin on unit variable costs, and nearly stable fixed costs.

Paper Excellence today warned that its customers may see pulp and paper delivery delays due to ongoing supply chain disruption in North America and particularly British Columbia. Over the past three months, global supply chains, ports and carriers have been impacted by disruptions related to the pandemic such as labour availability, lack of shipping containers, delayed carriers and significant port congestion. These backlogs have impacted the company’s ability to get finished products shipped in a timely manner. The atmospheric river weather system that hit British Columbia on Sunday, November 14 was a significant event that caused widespread damage. Although none of Paper Excellence’s facilities were directly impacted, there has been material damage to British Columbia’s infrastructure; particularly its roadways and railways. Closure of the TransCanada Highway, Highway 3 and Highway 5 in addition to the closure of the CP and CN rail lines has further impacted outbound product shipments as the company relies on both truck and rail transportation to move goods. The company also anticipates potential production interruptions over the next four weeks related to forest fibre and other goods shortages received at its British Columbian mills. The situation will be monitored closely in our decision to restart the Crofton facility from its current two week production curtailment.

Twin Rivers Paper Company LLC announced that it has entered into a definitive agreement to acquire the paper mill located in Pine Bluff, Arkansas owned by Mondi Group. Twin Rivers, headquartered in Madawaska, Maine, produces specialty packaging, label, publishing, and technical specialty papers as well as dimensional lumber. It is owned jointly by Atlas Holdings LLC and Blue Wolf Capital. The acquisition is anticipated to be completed in Q2 2018. Terms were not disclosed. The Pine Bluff mill to be acquired under this Agreement produces Multiwall, Converting and Grocery Bag grade unbleached kraft papers serving a variety of food, agricultural, and industrial applications. With basis weights between 40# and 78#, the mill has a capacity in excess of 140,000 US short tons. Click Read More below for additional information.