RE:My take on the delayFromSudbury wrote: "ongoing consideration and review of the accounting presentation in respect of certain of the Company’s equity security holdings and the fair value assessment of certain convertible promissory notes and warrants held by the Company."
I'm thinking they are having difficulty assigning a FMV to the secured convertable promisory note of $34,5000,000 with KWG.
If the note converts to shares, at what price do they convert, and therefore, how many KWG shares would FNC hold?
FNC's current market cap amounts to the total value of the CIA shares, so currently the market is giving little to no consideration for that promisory note.
I'm interested if anyone has any further insight into this.
I'd have to review the terms of that note with a fine toothed comb to provide useful insight into what the note is worth. I will suggest the solution is very, very, simple. Any way you look at it the value is completely out of date by now anyway. The statements are from APRIL ! This is not some new esoteric accounting theory discussion. There is , I'm certain, other issues resulting in this delay, not the valuation of any holding. The simple solution is to accept whatever valuation the auditors are comfortable with. The valuation is 100% pointless, irrelevant, moot, etc unless a transaction, non arms length of course, or buddy-buddy, is imminent for those exact assets. To further make my point, before the esoteric accounting theory arbitrarily changed, all those investments on the fnc balance sheet, and every other similarly structured company are valued at "book" , or "cost", or whatever term you choose to describe the original purchase price. And the asset stayed at that price on the balance sheet until there was irrefutable proof to the contrary by way of an actual transaction. There was no "mark to market" estimation going on. And it was so for many decades. So if they value it at April 30 at 100% of cost, or 150% of cost, or 50% of cost, who cares? The valuation today as reflected in the 10 cent stock price is not materially different from what it was 4 months ago. So just put a pin in it, file the annual statements for APRIL , and change it for the next interim statements due to be filed for July 31, by the September 29th deadline.