RusForest Announces Sale of Ystad Pellets AB


Stockholm, 2014-07-28 14:25 CEST (GLOBE NEWSWIRE) -- RusForest AB (publ) (“RusForest” or the “Company”) (NASDAQ OMX: RUSF), a Swedish forestry company with operations in Russia, announces the sale of its subsidiary, Ystad Pellets AB, which owns a non-core wood pellet mill that has been idle for several years in Ystad, Sweden. 

RusForest expects to receive a total net amount of $0.6 million in cash from the transaction. The Company has already received $0.2 million of this amount from the buyer. Payment of the remaining amount is contingent upon the buyer being able to renew key contracts with local port authorities and is expected in the next few weeks.

The sale of Ystad Pellets AB is expected to result in an impairment of approximately $0.9 million in the Q2 2014 financials to be released on August 29, 2014.

About RusForest AB

RusForest is a Swedish forestry company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products and wood pellets. RusForest is listed on NASDAQ OMX Stockholm First North (ticker “RUSF”).

RusForest AB's Certified Adviser on First North is Pareto Securities AB.

For additional information, please visit the Company’s website at www.rusforest.com or contact:

Gustav Wetterling, Group CFO, telephone: +46 8 771 85 00


Attachments

PR_Ystad_Sale_2014-07-28.pdf