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VICTORIA – Crailar, the North American-based flax fibre manufacturer, has announced that its board of directors has established a Special Committee which, the company says, will "identify, examine and consider strategic and financial alternatives available to Crailar." The company has also announced that it is now seeking a replacement for its flax fibre supply agreement with Georgia Pacific, its existing contract with the US-based multi-national coming to an end in November. Crailar's share price has fallen by more than 25 per cent since the announcement on 1 June.

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