11:47 AM EDT, 06/19/2024 (MT Newswires) -- GreenFirst Forest Products ( ICLTF ) said Wednesday its Kap Paper unit secured a non-revolving term loan facility of up to $24 million to support its paper mill operations in the town of Kapuskasing, Ontario.

The loan will be used for general working capital purposes and to ensure Kap Paper's competitiveness, GreenFirst said.

According to the company, Kap Paper has made operational improvements amid challenges related to diminishing wood-chip consumption.

"The company's sawmills in Kapuskasing, Hearst and Cochrane utilize Kap Paper's operations as an outlet for their chips," said Joel Fournier, GreenFirst's chief executive. "The financial support is integral to the company's long-term strategy."

GreenFirst's shares were last seen down $0.01 to $0.375 on the Toronto Stock Exchange.

Price: 0.38, Change: -0.01, Percent Change: -2.60