RE: 2 Billion new shares coming in June You joined April 9th, 2012 and posted the same day that you only bought shares in the company a few weeks prior to that, I would assume you bought around the end of March then? Well...I hate to break it to you but your share price estimates are completely off. If you would like to break down those numbers for me, and show me how you got 0.20-0.25 then I would love to hear it, because this is what the actual share price break down is.
Pro Forma proceeds - Began at 36.6M but have been reduced to 26.6M so far - this translates into 0.11/share.
The escrow fund is 25.4M - which translates into 0.10
This is for a total maximum share price of 0.21/share.
HOWEVER:
1) FIU has used 8/10M credit facility in just under a month, and there is a minimum 3 month span from now until closing if the asset sale was approved. At the rate they are burning through cash they will need more, meaning the pro-forma proceeds will be further reduced.
2) FIU needs to be in a cash positive position after the asset sale, meaning that they will need a further credit facility - this is not arguable, it is in the contract, do your DD. FIU has no cash on hand = the need for another credit facility, which as is explicitly written in the NR, will be reduced from the pro-forma proceeds
3) The escrow fund can be completely used if AngloGold or Gold One find ANY issues with MWS and EZ, or it can be reduced by a lawsuit - look how mad shareholders are, you dont think there will be lawsuits? One class action will take at least a year.
4) It takes 6 months after closing for the escrow fund to be dispensed to shareholders, this is SA regulations. As FIU pointed out in the circular, if the asset sale was approved, there would be a TSX de-listing review, and if FIU does not meet the standards (they won't because they won't even be a company anymore they'll be a shell), they will be de-listed from the TSX meaning that it may very well be virtually impossible to receive ANY of the escrow fund (if there was anything left)
I have gone through every piece of information on FIU you miserable piece of shi* and trust me, voting no to this deal is in the best interest of shareholders.