Ann: Response to ASX Query Letters, page-128

I'm just going to post some random dot points after reading through the pages and pages of explanation:

(1) The 24% commission is steep from the surface but in essence BIG as an entity pays this as "prepaid interest" for the end consumer for a year, hence the interest free period of 12 months for the video subscriber to pay off. In essence, BIG should be giving discounts for upfront payments or else there's no incentive for subscribers to pay upfront hence even I would use Finstro in these circumstances as a SME. 24% is also the annual interest rate if not paid fully at the end of period.
An example would be, in retail you will always get charged higher prices at places such as Harvey Norman for electing to use the finance option compared to paying cash because the interest is in built into the price for the 'interest free period'.

(2)The AFR insinuated that BIG was issuing deeply discounted stock to FINSTRO to compensate for potential bad/doubtful debts, from reading the arrangement its not remotely true. The FINSTRO arrangement is clearly quite onerous but given perspective from 2 years ago, a start up probably couldn't do any better. In reality, with better legs to stand on, they should renegotiate the terms or find an alternative financier when this relationship winds down eventually. Finstro only start losing money if 1/4 clients default in payments and go bankrupt, so whether the financing arrangement and cash-flow management system is worth 24%, that's open to discussion.

3) Nick Bennett (Operations - Los Angeles) and Kristi Short (COO) are both employed with BIG TV US. Kristi Short's shares are performance shares. The SP issue of Nick's shares at 45,000 x 50c doesn't look well on the surface but we have no idea how much his salary is or the market rate of his package would be including these shares.
On 02/02/2018 - they agreed to issue $2.37 x 3,800,000 shares when price closed at $3.40. " . Putting two and two together, since the consideration doesn't have "cash" stated, I can probably make an assumption that the services rendered, was somehow linked to an introduction with ZETA GLOBAL.

"Caivis Investment Corp was founded in 2007 by David A. Steinberg & John Sculley with one goal: to help entrepreneurs turn good ideas into great companies.
As a provider of capital, strategy, business relationships, process and technology, Caivis is uniquely positioned to help its portfolio companies grow at a faster rate. Participating in major or minority investments at any level, from a convertible note to a leverage buyout CAIVIS provides the most flexible capital."

Since inception, Caivis has made 20 plus investments. Two examples include Zeta Global, which was recently named one of the 50 most promising private companies in the world by Forbes, and Forensiq, a company that Caivis incubated and grew, prior to its eventual acquisition by Impact Radius in May, 2016.

(4) BIG Review TV at this moment in time isn't really 'a review site' as most people are confused about, i think that's a small part of their end game plan. I think they are currently more of a one stop shop for video content production. Instead of googling, you'll think about BIG if you want to do a video production, in reality they could diversify into all areas of video apart from SMEs.

(5) Questions you ask yourselves now is whether the growth story is in tact and whether the valuation justifies its growth opportunity. It's something for yourself to decide. (Risk v Reward).

(6) PONZI accountant story - Pretty Fake News (Who cares who sets up a company to place my shares in).

(7) If anyone is bored, they can go google the rest of the names on the list to see if there's any more ponzi criminals in there....