Fairfax Receives 33% of MEGA Brands in Equity and Warrants

[Parsad]

After the recapitalization of MEGA Brands, Fairfax ends up with nearly 20% of the company in equity, plus would control 33% of the company if they exercised the warrants they received as well.  Cheers!

 

http://finance.yahoo.com/news/Fairfax-Announces-Investment-iw-3122240444.html?x=0&.v=1

[tyska]

Any thoughts on whether  management can turn this around. I know from buying presents for kids, I have always sort of lumped their products with the dollar store type of stuff. No real brand loyalty as far as quality and nothing really novel, can that be changed with new product lines or new direction.

 

Dan

[Rabbitisrich]

This old Globe and Mail article provides a nice summary of the events leading to Fairfax's involvement:

http://www.theglobeandmail.com/report-on-business/rob-magazine/the-empire-strikes-back/article1149686/

[Uccmal]

The dilution has been about 95% from 36 million shares to over 500 million once all the warrants are received.  If it returns to former profitability this implies a top share price of $3.00.  FFH and Trimark have done what is best for their investment.