TSX:FANS - Post Discussion
Post by
Doozer on Aug 30, 2022 8:31am
Brutal Q
- Their balance sheet is bloated with goodwill and intangible assets, largely from the AmAff acquisition, and a good portion of the latter is attributed to AmAff "customer relationships" that have yet to bear any fruit from a B2B contract perspective in North America. FANS needs a meaningful non-AmAff B2B deal to start building service for the North American market NOW. Dragonbet in Wales is welcome, but that is small potatoes across the pond and likely a fraction of McBookie, which not for nothing, still hasn't been ported over to FANS tech and license to improve margins and we're well into the new Scottish and English permiership seasons.
- Quarterly AmAff earnout payments continue to be transacted at rock bottom share prices to Chris Grove (on the Board before merger) et al., and until this formula is fixed, why would anyone invest in this company? Too much risk for continued dillution for the rest of us and I'm starting to wonder about integrity and fiduciary duty at this point.
- cash on hand has evaporated to <$4.8mil and they'll need every penny to continue operations; forget about the NCIB / share buy back. They've purchased a small handful of shares (like 45k worth) through to July and will need to stop. Get ready for more financing at historic low SP.
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