Feronia Inc FRNFF

RE:Multilateral Institutions to the Rescue?

[Octocerebrus]

The company's filings show that the recent financings which have come in as short term notes will all automatically convert to equity this month - thats US$31m of debt converted to equity.   Leaving the company with an undrawn credit facility of US$49m and rather modest debt of C$5.4m at the parent company level and a substantial cash position. 

According to CDC's website, they are not bound to commonwealth countries at all and are invested broadly outside the commonwealth.   

Minorities have suffered here no question.  They are in a tricky jurisdiction and their underlying commodity price has collapsed - down over 50% in the past 4 year!  Looking at the company going forward however, legacy investors or new investors alike have a well capitalised company able to survive this cycle and be there in 1, 3, 5 years or whenever the cycle turns.