BIG Filing for Chapter 11 and Ceasing all Operations, page-289

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Sojourner

6,558 Posts.

1974

21/05/18

20:14

Post #: 33240661
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Originally posted by 5hareholder ↑

Well if she's a dead duck then I'll cop it on the chin. There's never a great deal of motive to run a scam. The Evertz duo maybe a bit too over their head here? The concept was intriguing, the financing model was (in principle) rather genius. Many things do not add up, but the present day feedback from staff within the business is the biggest sign to date (by far) that its an ugly road ahead for BIG.

I've been thinking over the past 3-4 days. All those share issues at extreme discounts. Whilst the board will claim that the agreements were made many months before the shares were issued, the conspiracy theorist in me believes this was a disguised attempt to foil the true expense of running the company.

Essentially you had revenue coming in the door in the form of debtor financing.
And you had some of BIG's share of expenses being paid via share issues. Staff were, I imagine, being paid via a cut of the FC cash injection, and the kitty dried up quite recently.

Essentially what you end up with is a whole lot of financing cash inflows, and investing cash outflows concealed as equity. However in the 4C cashflow reports, instead you had this "story" of an influx of operating cash inflows, and far smaller outflows.

Out of respect to those who have posted that they have unpaid wages or a rather significant capital at risk here I won't post my capital at risk which will come across as a pittance, but I do hope that those who have lost a fair whack can pick themselves up off the ground and enjoy time with the people around them. The corporate world can be extremely fortuitous but on this occasion I dare say with a fair degree of certainty that investors and staff have been caught short.

Thankful I have my own capital preservation rules, but also ashamed for believing the glossy brochure and Disallowed chatter from BIG in early February when the business model came under scrutiny.

Best of luck to all.

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Finance model was not genius. At its core, it looks very similar to the model run by those crap colleges that got people to sign up so thousands of dollars in debt for courses they could not finish. They used 'free' ipads as the inducement.

Looks as though big had the same model but instead of free ipads it was free videos and instead of the government being the financier it was fc capital.

BIG Price at posting: $2.22 Sentiment: Sell Disclosure: Not Held
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BIG Filing for Chapter 11 and Ceasing all Operations, page-289

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BIG Filing for Chapter 11 and Ceasing all Operations, page-289

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