Fantasy Aces Daily Fantasy Sports Corp FASDF

RE:valid questions from an interested outsider

[lscfa]

I can only offer educated guesses.

1) They had almost $4 million at the end of September. Why the need for financing so soon? Did they really burn through that money in only 4 months?

At September 30, current assets less current liabilities was $3.19 million.

One risk that was articulated by FAN, not FAS, is unfilled seats at guaranteed payout pools. There is a learning curve required to finesse the size of the prize pools to limit risk.

2) If their burn rate is $1 million/month, what will doing a $1.25 million finance do, keep them open until Spring Training?

Do you really want them doing a larger raise now when the stock price is depressed or just raise enough to get them to a point where they see the stock price rising again?


3) Who is this strategic marketing partner? Why was no name mentioned in the news release? Is Fantasy Aces in such dire financial constraints that this was the best arrangement they could come up with? Shareholders seem to be getting bent over in this deal with the obscene dilution. A name should have been disclosed.

The strategic partner may have demanded confidentiality until all deals are closed and they are ready to race into action.

4) Why didn't they propose a private placement when the share price was stronger? Poor forward thinking by management? Incompetence? 

Mgmt. of these start-ups always think the market will quickly realize the great value of their company and bid the price up before the next financing is required.