RE:Manipulation Continues Lumber,
One more reason to reconsider if CXR is worth the risk today.
Did you catch the recent Oct/7 short seller view on BNN arguing with simple numbers that CXR's debt now exceeds their assets (see below). This means limited value in the equity until this is reversed. You can of course argue that the method of analysis used is incorrect. I make no comment, that's for you to decide.
The closing of 350M secured notes just adds to the debt pile and further weakens the equity value. The new note holders get 9% yeild and have a good chance of staying whole if things go bad, but at the expense of common share holders.
This is a pure bet on Mark Thompson and his management team's ability to drive increasing value in their assets before a major negative debt event occurs.
I remind you that with the strategic review concluded, the result was no buyers, and no investors, just new secured note holders.
Like any company in trouble, facing challenges with the product portfoilo, competition, emerging troublesome regulatory and pricing environment...its all about cash burn and ability to meet debt obligations. Painful to watch.
https://www.bnn.ca/video/why-one-firm-is-staying-short-on-concordia~967826