RE:136,255,660 Shares & Warrants Will Be SET Free By 4/10/2017.Eigen337 wrote: FGD has a MASSIVE OVERHANG in CHEAP shares and warrants being RELEASED very soon !!!
This will be a HEAVY BURDEN on the share price given the DIFFERENCE between the EXERCISE PRICE of the shares and warrants and the LAST price quote on 2/24/2017 !!!!! I am NOT SURE if these shares and warrants {listed in 19,1} are SUBJECT to the four month hold period:
From 11/29/2016 IFS:
"9. SUBSEQUENT EVENTS 19.1 On November 21, 2016 the company entered into debt conversion agreements with eight (8) creditors of the Corporation whereby the company will issue an aggregate of 37,077,830 units in exchange for the cancellation of an aggregate of $3,707,783 in debt owing to the Creditors. The Debt Units will be issued at a deemed price of $0.10 per Debt Unit. Each Debt Unit is comprised of one (1) common share and one (1) non-transferable common share purchase warrant. Each Warrant will entitle the holder thereof to acquire one (1) common shareof the Company at an exercise price of $0.20 per share for a period of 36 months from the date of issuance. The issuance of the Debt Units is subject to the approval of the TSX Venture Exchange."
********** From 12/7/2016 News Release: " On November 11, 2016the Company announced that it was raising up to CDN $3,000,000 of gross proceeds (the "Offering") from the sale of up to 30,000,000 units (the "Units") priced at CDN$0.10 per Unit. Each Unit to be comprised of one (1) common share in the capital of the Company (a "Common Share") and one (1) Common Share purchase warrant (a "Warrant") entitling the holder to purchase one (1) Common Share for a period of three (3) years from the closing date of the Offering (the "WarrantExpiry Date") at an exercise price of CDN$0.20 per Common Share. Gross proceeds of the Units sold under the Offering will be used to fund the Company's continued expansion of its mobile payment service in target markets around the world, and for the purposes of general working capital.
The securities issued pursuant to the Offering will be subject to a four (4) month and one (1) day statutory hold period. In connection with the Offering, finder's fees totaling approximately CDN$210,000in cash was paid and approximately 2,100,000 Common Share purchase warrants (each, an "Agent Warrant") were issued. Each Agent Warrant is exercisable for oneCommon Share during the two (2) years following the first closing at an exercisable price of CDN $0.25."
**********
Shares outstanding on 9/30/2016: 152,342,372
So we get AT LEAST 288,598,032 shares if the above listed warrants are FULLY EXERCISED !!!
This doesn't even include the FULLY DILUTED count since there are other shares with the new financing (@ $ 0.50), options {before and after the 9/30/2016 date} and other possible convertible debt.
This is my opinion only.
Eigen337
Nice work Eigen... I saw this too.
Here is my take....
The company posted almost $3 million in sales in December Alone. I think the CEO mentioned that the company is on pace to meet guidance which is around $40 Million Profit by end of next year. (Can someone please back this up)
Here is some rough numbers..... $40 million profit over 400 million shares (fully diluted) is EPS of 10 cents (estimated)
At a 20x multiple, that puts this stock at $2 by end of next fiscal year. (All my own opinion). So the question becomes this? What multiple do other Fintech stocks trade at?
It was unfortunate that the company got backed into a corner with its debt issues in start-up. A lot of small cap companies never make it because of this. In regards to FGD, they bought their way out of debt with a sizeable position of shares and warrants... And the share price was around $0.10 then.
If the company can continue to execute its plan, shareholders should do well.
I predict FGD will be an eventual buyout target at some point by someone... just not sure who.
Great Post...
Good Luck to you.
FI4