VANCOUVER, April 8, 2019
VANCOUVER, April 8, 2019 /CNW/ - Fortress Global Enterprises Inc. ("Fortress" or the "Company") is pleased to announce that, further to its news release of July 11, 2018, its wholly-owned subsidiary, Fortress Xylitol Inc., has now entered into a definitive contribution agreement with Sustainable Development Technology Canada ("SDTC") whereby SDTC has committed $10.4 million in contribution funding to support the planned construction and operation of a xylitol and complementary bioproducts demonstration plant at Fortress' dissolving pulp mill in Thurso, Québec (the "Demonstration Plant Project"). This funding from SDTC is in addition to the $10 million grant from Natural Resources Canada previously announced and the anticipated provincial investment and loan of up to $7 million previously announced by Fortress on July 11, 2018 that remains subject to completion of definitive documentation.
The Demonstration Plant Project is intended to demonstrate technology for the co-production of value-added and sustainable bioproducts that will help transform the mill into a biorefinery. The process is expected to validate performance and produce pre-commercial quantities of food-grade xylitol and complementary bioproducts for testing and use by customers.
"We are very grateful for the strong federal government support for the Demonstration Plant Project, which we believe has the potential to transform our forest industry by creating new and valuable bioproducts from existing wood resources," stated Giovanni Iadeluca, President and CEO of Fortress." The technology that will be demonstrated is a key component of our vision to create a biorefinery that will produce sustainable and cost-effective xylitol along with other bioproducts."
About Fortress Global Enterprises Inc.
Fortress operates its dissolving pulp business at the Fortress Specialty Cellulose Inc. mill located in Thurso, Québec, Canada, which also operates in the renewable energy generation sector through its cogeneration facility. Fortress operates its bioproducts business through Fortress Advanced Bioproducts Inc., which has laboratory and pilot plant facilities in Vancouver, British Columbia, Canada.
This news release contains certain forward-looking information that reflects the current views and/or expectations of the Company with respect to its expectations, beliefs, assumptions, estimates and forecasts about its business and the industry and markets in which it operates. 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. Accordingly, readers should not place undue reliance on forward-looking information, which is qualified entirely by this cautionary statement. Examples of such forward-looking information contained in this news release include statements relating to: the growth and future prospects of the Company's business; expectations relating to expenditures; the impact of the Demonstration Plant Project; and expectations relating to financing the Demonstration Plant Project. Assumptions underlying the Company's expectations regarding forward-looking information contained in this news release include, among others: that the Company will be able to effectively market its products; the ability of the Company to realize significant cost-savings from production improvements, projects, and cost reduction initiatives; that equipment will operate at expected levels; that labour relations will remain positive; that the Company's assumptions relating to dissolving pulp, xylitol, other bioproducts, and other markets will be materially accurate; and that the Company will be able to secure the necessary financing required to implement the Demonstration Plant Project on satisfactory terms if at all. Persons reading this news release are cautioned that forward-looking information represents predictions only, and that the Company's actual future results or performance are subject to certain risks and uncertainties including, without limitation: that market conditions for dissolving pulp will not improve or will worsen; the Company will not realize anticipated cost savings from its cost reduction initiatives; equipment will not operate as intended and additional issues relating to equipment repairs will arise; there may be delays, cost overruns and financing or other impediments in implementing the Demonstration Plant Project; and other risk factors detailed in the Company's most recent Annual Information Form and other filings with Canadian securities regulatory authorities. These risks, as well as others, could cause actual results and events to vary significantly. The Company does not undertake any obligation to update any forward-looking information, except as required by applicable securities law.
SOURCE Fortress Global Enterprises Inc.
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