Fraser Papers Inc.

Fraser Papers Inc.

January 24, 2008 16:06 ET

Fraser Papers Completes Rights Offering

TORONTO, ONTARIO--(Marketwire - Jan. 24, 2008) -


Fraser Papers Inc. ("Fraser Papers" or the "Company") (TSX:FPS) announced today that it has completed the previously announced rights offering to its shareholders. Under the offering, a total of 20,656,913 common shares were issued at a price of $2.90 per share for aggregate proceeds of $59.9 million. The net proceeds from the Offering will be used to repay drawings under Fraser Papers' credit facility.

Following completion of the rights offering, a total of 50,166,789 common shares of Fraser Papers are issued and outstanding.

In satisfaction of its commitment under the Standby Purchase Agreement Brookfield Asset Management Inc. ("Brookfield") (TSX:BAM)(NYSE:BAM) purchased a total of 18,813,245 common shares under the Rights Offering and now holds a total of 35,374,941 common shares being approximately 70.5% of the total number of common shares of Fraser Papers currently issued and outstanding. Prior to the commencement of the Rights Offering, Brookfield held 16,561,696 common shares of Fraser Papers, representing approximately 56% of the total number of common shares of Fraser Papers then issued and outstanding.

This news release does not constitute an offer to sell or the solicitation of an offer to buy these securities. In addition, these securities have not been registered under the United States Securities Act of 1933, or any state securities laws, and may not be offered or sold in the United States. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company, containing detailed information about the Company and management.

Fraser Papers is an integrated specialty paper company which produces a broad range of specialty packaging and printing papers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec. Fraser Papers is listed on the Toronto Stock Exchange under the symbol: FPS. For more information, visit the Fraser Papers web site at

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