07:06 AM EST, 12/18/2024 (MT Newswires) -- GreenFirst Forest Products ( ICLTF ) overnight Tuesday signed an agreement with Mahogany Investors to sell its entitlements to refunds, including accrued interest, related to duties imposed on softwood lumber exported from Canada to the U.S. from 2021 and 2022.

The duties are US$60 million deposits made during the company's ownership of six softwood lumber mills in Ontario and Quebec, the company said in a statement. The Quebec assets were divested in 2023, but the company retained the rights and obligations related to the deposits, ensuring its entitlement to any potential refunds or benefits arising from the trade dispute resolution.

GreenFirst said the sale price for entitlements were about US$17.5 million, with the potential for additional proceeds based on the timing and resolution of the ongoing trade dispute.

"The recent rights offering, combined with today's transaction, will provide enough liquidity to execute Phase I of our strategic expenditures plan to become the largest sawyer in Ontario and get the company closer to becoming a top quartile lumber producer," said GreenFirst Chief Executive Joel Fournier.

On Monday, GreenFirst sold interest in 118 acres of private forest land to Kenora Chiefs Advisory for $5 million.

Shares of the company closed down $0.11, or 2%, to $5.69 on Tuesday on the Toronto Stock Exchange.