Vancouver’s Fortress Paper (TSX:FTP) is selling all shares in its bank note security subsidiary, Fortress Optical Features, to Nanotech Security Corp. (TSX-V:NTS) for $17.5 million.
The subsidiary makes optical security devices for valuable paper documents such as currency and passports.
Fortress CEO Chadwick Wasilenkoff said the sale is related to the company’s strategic plan to focus on its dissolving pulp and security paper products.
Fortress had difficulties earlier this year when the Chinese government announced in April that it would impose a 13% duty on cellulose pulp coming from Canada, the United States and Brazil. At the time, Wasilenkoff said this move was to give preferential treatment to Chinese-owned mills.
Fortress had a loss of nearly $21 million in 2014’s second quarter, compared with income of $134 million in the same period last year.
The deal is subject to the condition of regulatory approval.
As of press time, shares of Fortress Paper were trading at $2.29, which represents a jump of 9.57% compared with the share price prior to the announcement.
-With files from Tyler Orton
