"They have converted 500K debt into MNF equity which they are underwater on. So its in their best interests to protect MNF and get things going which I am comfortable they are doing."
Yes, I agree with you. Not only do Symbio own something like 5.3% of MNF, the two largest shareholders (each holding 23%) is Avondale Innovations Pty Ltd and Amber Asia Pty Ltd of course associated with the two mentioned executive directors. I'm not sure what the shareholdings of Symbio is, but it's probably fair to say Fung and Sugo have a 50% plus interest in MNF.
My understanding MNF is Symbio's largest client, so in terms of business it is not a good idea to let them fail. However it's not to say they can't give it a lifeline every now and again when needed (ie convert some more debt to equity) but keep the more profitable segment with Symbio.
MNF Price at posting:
0.0¢ Sentiment: None Disclosure: Held
