Ownership structure and potential for change
From the March 22nd, 2018 Annual Information Form:
As at the date hereof, the directors and officers of the Company as a group owned beneficially, directly or indirectly, or exercised control or discretion over an aggregate of 45,510,909 Common Shares, which is equal to approximately 13.45% of the issued and outstanding shares of the Company.
At the date hereof, Procon is a direct beneficial owner and exercises control or direction over approximately 10.92% of Fortune’s Common Shares.
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So the directors in total hold about 2.53% of the company. In fact the C.O.O only holds 100,00 shares. Half of what he held last year! Robin Goad, founder and CEO, holds roughly 1%. Despite an annual salary in excess of $300,000 and generous option packages, his faith or lack thereof, in this multi-billion dollar enterprise is pretty clear. Not exactly the vote of confidence we would expect from a person in his position.
This tells us a couple of things:
A - Management isn't putting their money where their mouth is. In the past year none of them have added any meaningful amount of shares to their holdings. Ramsay has pretty much halved his position. They are really good about giving themselves warrants and options. They seem to have a problem commiting real cash though.
B - There is high potential for a party to accumulate a significant position, sadly for not much money, and bring meaningful change to the company.
I have recently begun to look up small cap activist investment funds and have sent them a brief overview of the company and it's poor history of management. Hopefully they will see the value we do in the NICO project and bring about the change we so desperately need. If all of us start to take a pro-active approach in trying to find companies and funds with the capital to act, we will find an ally who can get the true valuation this company deserves. We can't trust the current runners of the company to get things done, let's find someone who can.