Swap Risk for Risk - FUNDING COMPETITION for ComapniesAs expected, we have FNR seeking some Subordinated Debenture Holders to Exchange for Equity and Debt - Risk swap for Risk - refer to press release that outlines the proposal - FNR set a 66% approval - for the transaction amongst Subordinated Debt holders for the issue - I espect FNR has or will have the votes to obtain the 66%.
Funding Competition - as anyone can see every Resource Company is seeking to raise funds - a published report shows over 550 companies on the TSX - V - do not currently meet listing reqirements on the cash situation, the others are all looking for $$$ including the Large Resource Companies. then we have the daily announcements of companies filing for bankruptcy or those who can't pay their debt, see Wall St. Journal/Financial Post and etc. FNR is one of the companies that needs to continue to raise capital for their operations so they are in the Funding Competition along with everyone else, there is only so many $$$ and everyone wants them.
In away its survival, which you will see or are seeing other ocmpanies doing along with cutting expenses, cutting staff, selling assets, and etc. But, FNR decided in 2014 to increase the MGMT Fees they pay TMM MGMT, from $10,000 to $17,000 per month, refer to financial statement unaudited for this notice, on Sedar ( Tom Mac Neills vehicle/company to receive his fees for his Investment MGMT services, yet we have a sinking in value of the portfolio and continued poor price/investment performance/experience, such as in WGF, SGF, EPL, WTR, DNI, GCR and etc. Private deals such as Nucoal, Grafton Resources .
There is MKT that FNR can go to with the right funding vehicle to attract $$$ but, so far they have not discovered this MKT. Also, they could SELL their investment holdings in stocks such as EPL, OMM, TEM, WGF, SGF, WTR, Troy energy, and etc. to raise funds for a fresh start and the ability to buy good asets that are or will be on the MKT??
All the above in my humble opinion and based on Financial MKTS, Resource MKTS, Financial News services global, Sedar filings, public comments made by FNR MGMT or MGMT Investment firm that is undercontract with FNR and etc.