Fortress Receives Multi-Year Moratorium on Investissment Québec Loan

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VANCOUVER, June 17, 2019 /CNW/ - Fortress Global Enterprises Inc. ("Fortress" or the "Company") is pleased to announce that it has been granted a multi-year moratorium on upcoming principal and interest payments by Investissement Québec ("IQ") under IQ's outstanding loan (the "IQ Loan"). Fortress has received, without penalty, a postponement of approximately $45 million in principal and interest payments under the IQ Loan from June 30, 2019 to December 31, 2021. Interest payments during this period will be deferred and capitalized and the maturity date of the IQ Loan has been extended by five years to December 31, 2031. The principal amount of the IQ Loan, including capitalized interest, is to be repaid in quarterly instalments beginning on March 31, 2022. IQ has also agreed to extend the moratorium and the term for an additional 24 months and subordinate its security in favour of third party lenders in the event that Fortress obtains new financing, subject to certain limitations.

Giovanni Iadeluca, Chief Executive Officer of Fortress, commented: "This multi-year deferral is a first step in strengthening our balance sheet and is a key component of our vision to create a long-term financing structure that will support the Company's growth. The moratorium will contribute to production initiatives currently underway at the Fortress Specialty Cellulose mill, increase the working capital available to the mill, and provide Fortress with greater financial flexibility. We are grateful to IQ for its continued support. IQ's willingness to agree to a further deferral and subordination of its security is reflective of our positive ongoing partnership with IQ and enables us to explore and evaluate new financing opportunities. We expect to provide updates on these opportunities as they become available."

About Fortress

Fortress operates its dissolving pulp business at the FSC mill located in Thurso, Québec, 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.

Forward-Looking Information

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; and expectations relating to financing. 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 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 financing if necessary. 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 production 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 Company's bioproducts demonstration project; additional financing may not be available on terms acceptable to the Company or at all; 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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