Post by
FromSudbury on Sep 21, 2023 8:39pm
FNC needs help
We went from:
"The Company intends to work diligently and expeditiously with its auditors and expects to file the Documents on or around September 11, 2023."
To:
"Fancamp and its auditors continue to work diligently toward completing the Annual Filings as soon as possible."
What seems clear to me is this part explaining the reason for the holdup:
The ongoing auditor review is primarily related to the 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.
That seems to imply the difficulty coming up with a FMV of the KWG convertible promissory notes and the warrants.
I would think the deal would initially show a note receivable of $34.5 million.
The parts of the deal dealing with the conversion of the notes to shares and warrants to shares is not as clear and that would be hard to put a number on.
Having said that, they could currently show a receivable of $34.5 million, then later, when the notes and warrants are converted, they could show a gain or loss at that time to reflect the value of those shares on the open market.
Regardless, they seem to need some help.
Any other ideas?
Comment by
miner540 on Sep 22, 2023 10:16am
I think the Audit concern is that the $34M receivable is worth significantly less than that amount. See my comments on the CACR discussion board Sept 12/23. With no agreement between the Auditors and FNC, next steps could include a third party arbitration/opinion and finally the Auditors resigning. Clearly there was no quick agreement/resolution between the two parties.
Comment by
FromSudbury on Sep 24, 2023 8:30pm
That information is useful miner540.