Canfor Pulp Announces Expiration of Go-Shop Period with No Alternative Acquisition Proposals

Canfor Pulp Products Inc. (TSX: CFX) announced the expiration of the go-shop period provided for in the arrangement agreement dated December 3, 2025, between Canfor Pulp and Canfor Corporation (Canfor Corp). Under this agreement, Canfor Corp will acquire all of Canfor Pulp's issued and outstanding common shares not already owned by Canfor Corp and its affiliates through a court-approved plan of arrangement under the Business Corporations Act (British Columbia). Each Canfor Pulp shareholder, excluding Canfor Corp and its affiliates, can elect to receive either 0.0425 of a Canfor Corp common share or $0.50 in cash per Canfor Pulp share held. Canfor Corp currently holds approximately 54.8% of the issued and outstanding Canfor Pulp shares. During the go-shop period, which ended January 19, 2026, Canfor Pulp's financial advisor, Stifel Nicolaus Canada Inc., contacted 15 potential buyers, but no acquisition proposals were received. Following expiration, Canfor Pulp is bound by non-solicitation covenants with fiduciary out provisions. A $500,000 termination fee applies if Canfor Pulp accepts a superior proposal. Canfor Corp lacks matching rights but agrees to negotiate voting support for qualifying superior proposals deemed in its best interests. Transaction completion requires shareholder, court, and regulatory approvals, including from the Toronto Stock Exchange. A special shareholder meeting is expected in Q1 2026, with details in a forthcoming management information circular filed on SEDAR+.