The Financial Post reports in its Wednesday, Aug. 27, edition that Fortress Paper ($2.29) is selling its operations that make security film used in bank notes to Nanotech Security ($1.69) for up to $17.5-million in cash and shares. A Canadian Press dispatch to the Post reports that Fortress Optical Features makes the colourful security threads contained in some Canadian paper currency and various international denominations. Developed together with the National Research Council of Canada in the early 1980s, the material was first used in Canada in 1988. The deal, expected to close on Sept. 10, includes $7-million cash, a $3-million secured note, and five million shares in Nanotech to be held in escrow and released over five years. Fortress Paper chief executive officer Chad Wasilenkoff says Fortress is selling the optical features operations to focus on its dissolving pulp and security paper segments, and improve the company's liquidity. Canaccord Genuity analyst Neal Gilmer downgraded Fortress Paper to "hold" from "buy" and cut his target price to $8 from $13 in the Post on May 16, 2013. The shares were then worth $6.10.