rest in peace, page-27

Pagarsi,

The announcements to date suggest that ATC is acquiring FNT, whereas, your reverse takeover scenario is more likely.

Originally, I thought that ATC acquiring FNT would have converted into a UK-market listing, as previously mooted by ATC. At the time, that would have made sense.

Doing a reverse takeover, however, begs the question - what is in it for FNT?

Access to ATC's infrastructure could just as easily be secured through striking a leasing, access or similarly styled arrangement.

So, why that suggestion?

I would have thought that the UK markets would have been more attractive from a capital raising perspective.

Conversely, perhaps the Australian market has a wider appeptite for small cap raisings, than does the UK market.

Either way, it is not about whether FNT acquiries ATC or vice versa. It is about how such a merger /acquisition is presented to the market, and has more to do with the standard and quality of the information being released.

I do not mind enthusiastic companies, and will be the first to offer congratulations if and when ATC succeeds.

The key to this happening, however, (whether ATC likes it or not) is bedding down the FNT transaction.

Beyond this, it is also a matter of ATC bedding down sufficient working capital to take them through to cashflow positive, and beyond.

No-one likes calling a company down, or seeing a company fail.

But progressively, as I have posted detailed analysis of ATC, others have criticised which I have sought to answer. That makes for good debate and the proper exchange of information, views, conjecture.

But there have been others who have made some pretty flighty revenue /profit predictions for ATC, only some of which has been backed in some detail.

In the case of FNT's revenue predictions jumping to $300m or more, the question that should be answered is what effect has the Chinese price rises had on FNT's own traffic flow (ie: they raised their prices in early November).

Based on what we have so far seen for ATC, it is also quite likely that FNT's traffic flow is down heavily on October (and earlier) results.

This is where the analysis tends to fall apart. This is why I am asking the questions, and like you, seeking out the answers.