Ann: Replacement Prospectus - 17 July 2015, page-2

The iCandy Interactive IPO capitalises the business at $44.9M, of which $3.5M will be cash , way too many red flags out there. Dont know much about their games or the one's they are developing but the subsidiaries have never operated at a profit.


Company’s Subsidiaries have operated at a loss for the previous three financial years (being a combined loss of approximately $287,000 for the period) and each of the audited financial statements for each of the Subsidiaries included an emphasis of matter stating that the going concern assumption of the entity depended on its ability to generate profits and or the continuation of support from the entity’s parent entity (which was then Fatfish)/its shareholders. Please refer to the financial information in Section 9 for further details. No assurance can be given that the Company will achieve commercial viability through its existing mobile games. Until the Company is able to realise value from its mobile games, it is likely to incur ongoing operating losses. Achievement of the Group’s objectives will depend on the Board’s ability to successfully implement its growth strategy. Depending on the Company’s ability to generate income from its operations, the Company will likely require further financing in addition to amounts raised under the Offer.

The Company’s (and Fatfish’s) plan is to increase the percentage of the Company’s ‘free float’ above 10% by completing Fatfish’s Inspecie Distribution within 6 months of the Company being admitted to the Official List. However, there can be no guarantee that an active market in the Shares will develop or that the price of the Shares will increase. (90% most likely held in escrow for a year or two making the stock very illiquid)