Sale Of Alcell Technologies Terminated
Tuesday May 26, 1:33 pm Eastern Time
Company Press Release
STAMFORD, Connecticut, May 26 /CNW/ - Repap Enterprises Inc. [OTC BB:RPAPF - news] today announced that it has terminated its agreement to sell the shares of Alcell Technologies Inc. to Malaspina Capital Ltd. Announced in December 1997, the sale, which would have contributed Cdn$2 million of cash and a Cdn$2 million debenture convertible into shares of Malaspina Capital Ltd., would have enabled efforts to commercialize the Alcell technology to continue.
Malaspina Capital Ltd. informed Repap on May 22 that it was unable to raise the financing necessary to complete the sale and provide adequate working capital for the Alcell operations. In announcing the termination of the proposed sale, Mr. Larson, President and CEO of Repap said: ''With Repap's emphasis on cost control and concentration on its core lightweight coated paper business, it cannot afford to continue to support Alcell in anticipation that another buyer can be located. Accordingly, the Alcell operations, which had been written off in 1996 and substantially downsized last year, will be permanently closed.''
Repap Enterprises Inc. is an integrated lightweight coated groundwood paper facility located in Miramichi, New Brunswick with an annual capacity of 492,000 tons of coated paper, 235,000 metric tons of northern bleached softwood kraft pulp, 125,000 metric tons of groundwood pulp and 58 mmbf of lumber.
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