How FC financing works for BIG, page-397

Hi Maysgr

IMO, FCC never paid anything for BIG shares. They were simply paid in shares for the establishment fee and commitment fee.

As per Aware letter:

Pursuant to the Agreement, FC was entitled to subscribe for 3,030,000 shares in BIG. If at the time of issuing those shares, the Parent Share Value was greater than $500,000 then BRTV agreed to pay on that date, an establishment fee equal to the difference between the Parent Share Value. Parent Share Value is defined as "at the date of issue of the Parent Shares under clause 21.1.1, means an amount equal to 3,030,000 multiplied by a share price agreed by both parties". The agreed share price was $0.20. Accordingly, in addition to FC subscribing for 2,500,000 shares at an issue price of $0.20 (for an aggregate of $500,000 to be paid by FC), an invoice was raised by FC for $116,666.66 ($106,060.60 plus GST of $10,606.66) which was settled by the issue of a further 530,303 Company shares at an issue price of $0.20 per share.


40 FC has no other right or entitlement to any securities in BIG pursuant to the Agreement or otherwise. FC has also confirmed that the commitment fee and establishment fee had been paid in full and neither the Company or BRTV has any further obligation in this regard.


I do believe the number of shares were agreed to at the time, but as BIG had no cash to pay the fees upfront for the pool, FCC did a deal in shares (but they didn't issue the shares straight away) because FCC wanted to see BIG reach some hurdles first.

That's my guess on the situation.
It could well be BIG paid FCC $500k at some point once established (read the notes on what the funds in the pool can actually be used for) and with those funds FCC bought BIG shares with it, simple.


US FCC equivalent, 3.8m shares at $2.37 = $9m worth of shares unless my calc is broken?

Ok, understand the Tipsly deal better now that you have pointed out in reference to the $12m rev, thank you, still think they paid too much for it by many multiples.