Major shareholders realized they were going to lose an ASX listing and their loot.
Something had to be done.
Frugl had 1 employee with tech knowledge and no cash. They could not develop the minimalistic business model any further with the Australian operation which was scattered from Perth to Brisbane.
It was a dud.
I am of the view that a deal was structured to get this new group on board giving them easy access to an ASX listing.
IMO Frugl the grocery app will probably disappear in its current form. It was going nowhere. In Australia the grocery industry is controlled by Coles/Woolworths - they have complete access to all the "data" they require via their tech systems.
The new group is a different ball game - although yet to show decent numbers.
The ASX listing will now ensure transparency of their future progress and give them access to raising cash from potential investors or doing deals via placements to "sophisticated" investors. Whichever way they plan on moving forward, they can now present a new story as financial bait.
One burning factor remains - Is the culture surrounding this listing still the same or has it changed?
It has been listed on the ASX since 2007 - that is 17 years and never fired a shot. Raised millions, spent millions on directors/CEOs/consultancy/administration and associated fees.
Will it deliver this time or is it just another dress-up show for vultures to once again peck the carcass clean?
FGL Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
