RE:My take on the delay
FromSudbury 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.
As for the current market valuation of fnc shares at 10 cents, there are multiple moving parts to consider what is "fair" or what is "cheap". Yes the 10 cents roughly equates to the value of the cia shares. There was also cash until the treasury was pillaged for investments in non arms length deals like EDM. There was very little cash burn before the hungry mouths of the new junta took over. Old man smith was indeed quite frugal with things like rent and other overhead and fnc wasn't shelling out endless dollars for "consulting" and legal defense and offensive strategies. So the value of fnc was even LESS than the value of the CIA shares. Which attracted investors like me, long ago, but also opportunists looking to carve off and cut up all they could. Value today reflects an investor's assessment of all those other holdings, yes, but also how much of that value, and indeed the whole company value, will ever trickle down or leak to anyone outside the inner sanctum? Or in simpler terms, so what if the asset value is 20,50,99 cents per share if you will never see one cent of that value as it's carved off in side deals? What's that worth? There's also the more mundane issue of taxes which arises for all holding companies, or a mutual fund, or an ETF etc. When the portfolio, or large part of it, is liquidated, it may create a large capital gain which devours a big chunk of your CIA shares, for example. I'd have to review the tax loss carry forwards to know if there is enough of the right kind of losses to shelter any gain from sale, but it wasn't a big concern historically.
as always, good luck, do your homework