I am a little confused in why they need FTT - is it just as a listed vehicle? Unless they currently have a substantial holding in FTT they are giving away their firepower ($) to gain access to a listed entity.
They have done well recently in the gold space using leverage they have returned 3.2M from 2.2M invested since Mar2018. Can this continue? They have a position in goldie RED5 which has lost 1/3 of its value recently so what is their current FUM or NAV.
Also my understanding of the funds management business is that you need a substantial amount of FUM to cover fixed costs. Forager, Ophir have >200M FUM. Not sure how they can ramp this up from 3.2M. If their FUM is 5.4M - 2% is 108k pa so probably not enough to operate cash flow positive. Not sure what a business like this is worth - about what we are now? especially if it cash flow negative.
I am just trying to understand whats in this for FTT. I was hoping a new acquisition could bring a value closer to ~10M MC and I still think this is the best way forward.
A bit of a brain dump.
FTT Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
(20min delay)