Shareholders could, if they wished, do what the LATAM business vendors did, and increase their positions in FDV if they believe the current they current EV of ~$125m undervalues the underlying assets of the company. And they would only have to do so very modestly in order to avoid dilution.
Not sure how long you have been following this stock but shareholders were already offered to increase their position in the SPP just a month ago at 0.45c, which is ~11% premium to the issue price used for the earn-out conversion.
How many time do SH need to top up to avoid dilution with this stock?
For once I feel for the institutional investors who less than two month poured in $13m at 0.56c which is 40% premium to the issue price used for the earn-out conversion.
I think you are too kind with management. I agree with @Adimadis that they dropped the ball by assuming they could do another CR at higher price. They've successfully done CR almost every year since IPO (the cynic in me would say it's part of their business model) but got caught in the unprofitable tech sell-off this time.
Out of curiosity, what's holding you back from pulling the trigger on this stock?
FDV Price at posting:
36.5¢ Sentiment: None Disclosure: Not Held
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