re: Ann: UPDATE ON RECAPITALISATION PROPOSAL ...
As already mentioned, one cannot help but be cynical. Also the market (based on today's activity) doesn't appear convinced that all is going to be smooth sailing. Am still keeping my fingers crossed for good news by COB Monday 20th. - was that 2014 or 2015?? Another week of watching the grass grow - today marks fourteen months since the proposal was first announced to the market and it had probably been in the melting pot for some considerable time prior to that. It has been watered down a bit since then for the benefit of others - not for the benefit of long-suffering minority shareholders.
I too don't like the final paragraph of the announcement -
"If the funds are not received by the Company by close of business on 20 January 2014, the Company has a right (but not the obligation), at its sole discretion and without further notice to IZN, to terminate the Subscription Agreement and the Underwriting Agreement without penalty"
It appears to have been included to maybe SOFTEN US UP - or am I being cynical again.
I am still holding and hoping, especially as the word is that there have been considerable changes made by FFF in recent times including cost-cutting and the changes have been positive. So maybe all is not lost. The next set of half-yearly figures due late Feb. 2014 could therefore be interesting reading, especially if there are no abnormal write-downs.
The lack of information being disseminated by FFF to shareholders (other than standard ASX requirements, AGM details and occasional updates on the recapitalisation proposal) is also a concern. Very little about the business itself (other than at AGM) has been announced in the past 12 months. The board of Directors is basically "selling the farm", (handing control to the new funding 'consortium'), so lets hope the current Board, which includes major shareholders, gets it right.
FFF Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
