Risk Factors Update Summary

• Acquisition of paperboard facility in Augusta, Georgia may not proceed as anticipated, with risks including stockholder litigation and integration challenges. This acquisition will increase our indebtedness and could impact our ability to access additional capital. The acquisition entails many risks, including unexpected costs, charges, and expenses. The integration process will be complex, costly, and time-consuming.
• Increase in paperboard revenue and gross margins due to competition and market conditions. We experienced increased price competition and a significant drop in demand, leading to a decrease in paperboard revenue and gross margins. This competition and decline in demand have adversely affected our financial condition.
• Changes in tissue supply affecting operating results and financial condition. Several new tissue paper machines and converting assets have increased tissue supply, potentially depressing product pricing and margins. If demand does not increase commensurate with supply, it could adversely affect our financial condition.