Thanks to Canuck81
4 Nov
Backgound to GEM financing deal and ongoing selldown (Canuck81)
Back in March 2020, FYI signed an A$80M equity facility with GEM which included 46.7M options @ 15c.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02212626-6A971300?access_token=83ff96335c2d45a094df02a206a39ff4
Aside from A$3.13M the equity facility still remains in place however the options have been fully converted to shares.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02341414-6A1020320?access_token=83ff96335c2d45a094df02a206a39ff4
In hindsight, this wasn't the best deal for FYI but we don't know what impact this had on the negotiations with Alcoa. GEM still holds 14M+ shares which up until a few days ago were selling a few hundred thousand per day. They will likely sell down to zero but are careful with their selling, unlike Regal who are a bit brutal when they decide to exit a stock. There's still a chance we'll see a large block sale related to these shares.
FYI Price at posting: 37.5¢ Sentiment: Buy Disclosure: Held
