2. 12/4/2024 (a week ago) shareholders voted in favour to pave the way for a raise of $2,000,000.
3. A cap raise as expected was called.
4. 30% of the cap raise ($150,000) appears to have sold to a standard 'sophisticated investor/s'
5. 70% of the cap raise ($350,000) requires shareholder approval - why?
6. I speculate that the "70%" is conditional, or requires some additional terms - there are strings attached.
7. If point 5 is true - then point 3 should be relied upon as the true success of the raise.
8. There is no timeline or reference as to when the "30%" shares will be settled. Typically (always) the completion of cap raise announcement confirms when new shares will hit the market. No detail provided.
9. The release states that about the raise - and I quote - "The Company will provide further details in this respect in due course, however at this time, the timetables and other details have not been determined". - WTF?
10. The use of the $500,000 says the money will be used for "Inventory, Marketing Expenses, Brand Development and Working Capital."
I expect the ASX will question this as its far to loose and deviates significantly based on the original EGM meeting budget provided and approved by shareholders - given the small amount of money raised.
11. The company "plans to to undertake a rights issue of $500k" but says this will happen in the future. Rights issues are always announced at the time of the cap raise to institutional or sophisticated investors. This is proof in my opinion that the whole thing is being made up as FIJ go. Poor form.
12. The broker "Novus Capital" is being issued 65,000,000 options for a current float of 600,000,000 including todays raise - That's potentially 10% of the company!!? Never heard of such a thing.
13. The broker is also being remunerated $30,000 (5%) + 10,000,000 shares ($30,000) + 3,333,333 in options. As per the FIJ EGM document the broker was being 11.5% which I have pointed out previously - only now people are waking up.
14. What is going on & why is the broker getting such large kickbacks? This is unheard of.
15. Why does FIJ continue to engage Novus Capital? Its arguable the success of raises is questionable. I speculate no other broker wants to touch the company. PAC partners (corporate broker who used to manage FIJ raises - when Ian Leete was employed by them) issued a sell rating to its clients and parted ways with FIJ back in the 10c days.
16. Directors, BOD and investor advisory panel are absent from the biggest dilutionary raise at record low prices. One of my rules - never to invest when the directors are asking for funds but don't put in themselves. Usually doesnt work out well.
17. "Options, fees and shares to be issued subject to shareholder approval will all be presented in a Notice of Meeting, currently being drafted" Expect consolidation and some other great surprises coming up in the next EGM. We just had one a few weeks ago right? Odd to call another so soon about the same thing - capital requirements.
(20min delay)