re: Ann: Update on Recapitalisation Proposal ...
The company has solid fundamentals and is really undervalued compared to P/E ratio of market. After cap raising is done and debt is almost paid off, the company’s revenue should increase by 3.5mil per year to around 5mil, giving it a targeted PE ratio of around 9 leading to a share price of around 6c (60c after share 1:10 consolidation). However this is an undiluted amount (the cap raising will dilute shareholder value).
Current share price (assume for simplicity sake) 2c with 773,886,809 shares on issue.
Assuming full support of cap raising, will have 1,547,773,618 shares on issue, with around 1.5c value per share theoretically. With ACE taking a placement of 300mil shares at 1.5c. Theoretical price is 1.86c. ACE second placement of 1bil shares at 3.5c. Theoretical price is 2.65c.
After the placement, assuming previously mentioned PE ratio boost, we can see a share price of around 8c or 80c after consolidation. Definitely a buy in my books.
FFF Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
