Fibrek Inc FBKZF

The rights issue

[oddykog]

It is quite understandable that the share price has declined drastically with the rights offering about to hit the market.  Now we know that they will raise $40 million at a price of $1.01/new share or about 44 cents for each existing share and use these funds as part of a refunding effort, which will eliminate the onerous requirements of last year's agreement with the banks when bankruptcy looked like a possibility.  After that they still have the debentures to go, which mature at the end of 2011, I believe. 

Any one who does not subscribe will be diluted, so it is better to pony up!