OPTICAL SECURITY FEATURES
Fortress Optical Features Quebec, Canada
On January 4, 2011, Fortress Paper completed the acquisition of the assets of the Bank of Canada’s Optical Security Material (OSM) division, The OSM assets and production staff were relocated to Thurso, Québec in October, 2011. A high security production and research and development facility was constructed adjacent to the Fortress Specialty Cellulose mill. The new facility which houses specialized production equipment and approx. 23 staff has an annual production capacity of approx. 1,860,000 sq. mt (~1,860 rolls). Fortress Paper announced in Aug 2014 that it had entered into a purchase agreement with Nanotech Security Corp. for the sale of Fortress Optical Features for an aggregate purchase price of up to $17.5 Million. On September 16, 2014 Fortress Paper announced that it has successfully completed the sale of Fortress Optical Features Ltd. to Nanotech Security Corp. previously announced on August 26, 2014. The purchase price for the sale is up to $17,500,000, subject to a post-closing working capital adjustment and earn-out in respect of 3,000,000 common shares of Nanotech, which shares were issued at a deemed price of $1.50 per share will be held in escrow to be released to the Company upon the achievement of certain business milestones by Fortress Optical Features and/or Nanotech over a five year period.
With the sale of FOF, Fortress Paper will no longer manufacture optically variable thin film material.