I agree with the dilution aspect etc.
Just a thought though, ask yourselves as shareholders, have you put into the company? If you bought share what benefit to the company are you? you just paid for someone else’s, if you were part of the CR in 2016 great ! (it was when they needed the cash), yes they are now a listed company and need to answer to the shareholders but for FS put it in perspective.
FC Capital it seems have been an integral part of the success (does management not have the right to reward the parties that have helped them over the line as agreed over 1 year ago, would you prefer FC lodging a court case saying they are not fulfilling an agreement and are untrustworthy (at the time the value of the agreement was probably not that significant), without the FC partnership we could be sitting at $10M per quarter cash receipts or less (maybe even a SP of 20c with equivalent dilution due to CR’s with sops investors moping up discounted share and making easy profits). Are they paying for bad debt? Why would they do that, they are shareholders but they are also trying to build a business with very little room to pay themselves for the time, effort and that ONE thing none of us could come up with on our own or have the balls to put it in motion, THE IDEA and BUSINESS PLAN (if management started to ask for $1M cash bonuses then the sirens will be going off). Give them a break, they were a $20M dollar company just over a year ago that was already kicking goals with little recognition, that has now grown at a rate even management cannot believe.
Irrespective of personal pasts and maybe a little oversight on governance, all at big are being paid peanuts in cash (salary) for what they have achieved in the last 3 years, yes there is dilution with performance shares but everyone here (not BIG management) can sell their shares are walk away, management are stuck. They cant sell quick enough to realise their wealth, they plod on hoping when the dividends come so they can benefit (as this is the only way they are going to get significant returns). All you have to do is look at CEO’s pay packets of similar size MC companies.
This is a company with growing pains IMO, the limelight has now been put on them, and they have subsequently surrounded themselves with some exceptional advisors that can take them to the next level.
You have a journalist, with little vested interest, trying to destroy an up an coming business based on decisions and deals they made before they even thought they might be able to make something special. Not to mention now attacking the ASX, who are trying to build business and also bring overseas business to Australia, to what end? That’s an easy one, “to sell papers”, not to help business, or to increase investment options for investors, and subsequently to supply jobs to Australians. No, the story I am getting is, don’t give it a go because we will find a way to get you and destroy your business and don’t bother bring your business here because we are incompetent. Great message to send off shore, keep it up JS!! It’s all about the bigger picture!!
The big man with his finger on the button has more floors than his building empire IMO, but has the lawyers to destroy anyone coming after him, why pick on the vulnerable.
I am not saying that the said journalist should not do their job but maybe have a little more insight to the bigger picture (although society tends to drift towards the crappy, the world is against me stories, rather than stories with hope), I am just saying if Australia had a culture of influential people and business leaders trying to mentor and help the next generation, trying to build people up rather than knock them down, Then hopefully the culture would encourage respect for people that have worked hard and achieved, but also people that have worked hard and not achieved, giving them the fight to give it another go.
Imagine if we had a culture that encouraged that extra 1/100 additional people to give it a go, have the confidence to try, have the confidence to fail and try again.
From speaking to management they were very genuine in their belief in the company and were excited in the way the SP was making a difference to investors lives and future potential for the company.
Shareholders are fickle, why should they put us above the long term benefits of the company. If you don’t like the journey get off the train but remember that management are in the front carriage, why would they drive it off a cliff. If you don’t like it go and invest in companies that promising the world, where staff costs are ten times cash receipts, plenty of them around (oh but their corporate gouvernance is fantastic because they have a few investment bankers on their board).
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