So ASX has pinged ICI for inadequate disclosure. Bigger issue for investors is probably that ICI has made an unsecured loan of somewhat over $1m to (or 'for' - the loan seems to be 'to' the parent company Fintech, not a direct loan to the subsidiary PDSB, though the preamble describes it as an 'investment in' PDSB) a startup business that is doing a bit of work for ICI. Interesting to see the due diligence on that one - main claims seem to be that the business is a subsidiary of an investor in FFG (so it must be OK?), and if the start up business doesn't have the wherewithal to repay the loan then ICI will end up with shares in said worthless company on the basis of a pre-agreed company valuation of $1.5m: which doesn't seem much of a recommendation for a million dollar unsecured loan. Why would a games developer invest in a startup business to work on a one off games payments contract rather than simply paying for a proven off-the-shelf solution from a commercial provider?
ICI Price at posting:
17.0¢ Sentiment: None Disclosure: Not Held
