Colt's Post I am reposting comments made by the vacationing Colt451. He makes sense. The thrust is that shareholders have not been given the "certainty" of return as the company claims we have been offered.
Hey guys, I'm currently on vacation, but...I thought I should check in on FIU and was I surprised...well not really, here are my thoughts on the current situation
1) Please, do not take the NR's open ended statements as facts - the pro forma proceeds have been updated multiple times, the simple fact of the matter is that if you believe that 0.22/share is the distrubution, then you are trusting FIU management. I'm sorry, and this has nothing to do with animosity towards the decline in the stock price, but FIU management is not looking out for the best interest of shareholders. I will present why in point 2. Further concerning the share distrubution though, the theoretical 0.33/share relies on the escrow fund not being depleted, I have stated this multiple times, but the escrow fund will in all reality be depleted, because a) AngloGold will claim damages against MWS requring escrow funds to repair, b) Gold One will claim damages against EZ requiring escrow funds to repair, c) shareholders will sue requiring escrow funds to defend against. - Not to mention that we have used the credit facility, and these deals would not close until August, who is going to pay to keep FIU running in the meantime? Us. And the after you accept the deal, the pro forma proceeds will be used until almost nothing is left. Remember where the pro forma proceeds began? And then a few weeks ago FIU released a NR saying that the pro forma proceeds had been reduced by 10M, and now suddenly they have been increased again? What's to stop them from reducing them again?
2) FIU management claims Waterpan must offer 405M for 50%, which would equate to what...2.50+/share?What? Why does Waterpan need to offer 405M? If Waterpan wants to present a takeover bid, lets say at 0.40/share, it is none of FIU management's business what Waterpan does to deal with the debt after. It is Waterpan's debt from there and they can do whatever they want. For the management of a publicly traded company to prematurely attempt to block a bid of a claimed "troubled" company is laughable and frankly irresponsible. If they were looking out for shareholders FIU management would simply say, "okay Waterpan offered 0.40/share, and they will accept all incoming debt, this is a better deal, we accept." Instead, FIU managemetn is trying to block the deal and warning shareholders that we need to accept the asset sale - obviously they do not care about shareholders, or at the very least, shareholders are not their first, second, third, but fourth priorty. If you are unsure about what is going on, or how you should vote, you really need to think about what are FIU management's motivations for rejecting these other offers.
3) Does anyone else find it extermely strange that for the last year we hear almost nothing from the company, and then we are told the assets are sold, we hear virtually nothing again for a month, and then suddenly, management starts releasing NR's every second day that shareholders must vote yes etc. This isn't a conspirancy, it's blatent corruption. The way that FIU management has decreased and increased the pro forma proceeds to manipulate shareholders is a red flag in my eyes.
In closing, if you want to believe that there is 0.22-0.33/share then go ahead, buy shares because apparently you will make an easy 100% profit. But keep in mind...when all this started I said I would absolutely accept 0.30+/share as long as we were told that we would 100% be getting it. We still have not been told this, instead, we have been told that there may be 0.22-0.33/share, the pro forma proceeds can be updated at any time, as we have seen, the escrow fund can be depleted, the stock may be delisted if the asset sale is approved resulting in shareholders being unable to even accept their pro forma proceeds. I am sorry but I do not trust management. Period. If you do, vote yes, if you do not vote no. It is as simple as that, now I'm going back to vacation, I'll be around over the next couple days for the fireworks though!
Keep getting the word out...management is clearly scared, I would imagine there are some very unhappy Anglo Gold CEO's in South Africa right now threatning to take Deon behind the wood shed and...well you get the point, let's vote this **** deal down and move on.
https://www.stockhouse.com/Bullboards/MessageDetail.aspx?p=0&m=31145792&l=0&r=0&s=FIU&t=LIST