CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

RE:Destroying Shareholder Value!

[Kherson]

Kherson wrote: Folks, keep in mind that Canexus has to use the monies they will receive from Blunderheim to pay down bank debt as required in their financial covenants, hence the ongoing discussions to amend the terms of the present bank facility. Keep in mind though that if these discussions are not successful, Canexus will be issuing a whole lot of new shares at year end to cover that maturing Convertible Debenture!
With a book value now at 11 cents, Canexus might have to issue upwards of 500 million new shares!
Looking back, one has to wonder why did Canexus pay and are still paying a dividend? As Calgaryrider has alluded to recently, the former CFO gets the award as the worse CFO in Canadian history!
In my opinion, today is still not the day to buy...
Kherson

The above was posted August 6, 2015. Now Canexus equity is worth zero and the company is facing the possibility of breaching it's covenants and triggering a default event. What is really strange is that Canexus has not posted their Annual Financial Statements on their website!
Kherson