08:44 AM EST, 12/13/2024 (MT Newswires) -- GreenFirst Forest Products ( ICLTF ) said Friday that it raised $25.8 million in a rights offering.

The company said it will use the proceeds to support an off-cycle capital expenditure program that will drive increased operational productivity and future earnings.

GreenFirst said each right entitled the holder to purchase one share at $5.47 apiece. It received subscriptions for 4,718,886 shares including the standby commitment from funds managed by Robotti & Company Advisors.

"This unique opportunity for GreenFirst will help us execute our strategic plan, which we have presented to our shareholders," CEO Joel Fournier said. "It will enable us to achieve our goal of becoming a top quartile cost producer in lumber and takes us another step closer to being the largest wood producer in Ontario."

Fournier said the company will soon announce some key capital projects planned for early next year.