Smalldude, I'd still be objecting if the share price was 25 cents. I know that, because it was when I first objected. My problem then was I did not want to be forced to exercise a year before the exercise date just because management decided to split the heads. The options came out in January, and we had 18 months to decide whether to exercise. The distribution, if the exercise was not adjusted or if iCandy options were not issued to FFGO holders, was bringing forward the exercise date to the distribution books date. That objection would hold now: if I held 500,000 heads, would I really want to pay $100k to exercise now to get the distribution, even if the heads were 25 cents? Probably not: I'd want to see how it goes with FFG and iCandy, maybe double my money on the FFGO options and sell out if all went well before July 2016. That option is closed if the distribution goes as planned with no adjustment, and the iCandy value is taken out of the FFG heads.
Second, the timetable is very tight: not impossible, but you will need to act fast. The IPO closes on 11 Sept, so that is when we will know if it was subscribed. Then the meeting is on 18 Sept, which is when we will know if the distribution is going ahead. Then iCandy is supposed to list on 21 Sept, which is when we'll get an idea of what they are worth. Probably good info to have before you fork out your hard earned cash. The books date is opening of business on 23 September, so you have two days to do the exercising (21 & 22 Sept). Pretty tight. (Dates are on page 4 of the replacement prospectus). And while you say don't cry foul, I reckon there was cause to think that there was some clever heads pricing going on to offload FFG options: so I'd want time to see where the iCandy price was going, rather than rely on one or two days' trading. We won't have that luxury.
We could argue about whether it is too early to float iCandy given its small and declining revenues; and about whether it would be better for FFG to sell iCandy for cash (over time) and distribute cash as a regular dividend, rather than a one off scrip distribution. My view is that management has got it wrong on both counts, but that's their call.
Maybe if they kept iCandy in house (didn't distribute it) then the share price would be up to 25 cents some time before the options expired in July next year and all dreams would come true. If they close the books for the distribution on 23 September, and the price hasn't got to 25 cents by then, that's the end for the options: if you were thinking of exercising you wouldn't, especially because it takes a month before you can sell the new shares. It didn't, and doesn't, have to be that way: cancel the distribution and keep the options alive. That is worth getting a bit warm about.
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