RE:RE:My take on the delayFrom last years financial statements:
Marketable Securities
Marketable securities consist of common shares and warrants of publicly-traded companies listed on the TSX Venture Exchange as well as common shares of a private company. Marketable securities are classified as FVTPL and are recorded at their fair values using quoted market prices at the statement of financial position date. Subsequent revaluation resulting in unrealized gains or losses is recorded in the consolidated statements of operations and comprehensive income (loss).
Note the bolded section.
The transaction with KWG resulted in a purchase by KWG of Fancamp property.
Fancamp then lent back the purchase with interest.
Since the loan is a receivable at $34.5 million; that is an asset and I would think it would be reflected on the balance sheet as such for now.
However, the loan is convertable to shares at some point and at some price...that point I'm not clear about, but at a minimum Fancamp stands to gain a large controlling interest in KWG it would seem.
Problem is, KWG's market cap is only about $25 million; so hard to attribute a value that would exceed that amount.
If some entity moves to take over KWG, they will inherit the $34.5 million loan and would likely have to pay that out as part of the deal unless they were to negociate a lower price with FNC.
It's a confusing deal and hard to attribute a value to; but it's certainly not nothing.
We will find out soon enough.
The Company intends to work diligently and expeditiously with its auditors and expects to file the Documents on or around September 11, 2023.