Fidelity Deal Only Buys FBR 27 Days of Survival – has anyone looked at the numbers?

Just running some simple numbers based on FBR’s latest disclosures:

• Before the 70% workforce reduction, FBR’s monthly burn rate was around A$2.0 million.

• After the cuts, the reduced monthly cost is estimated at around A$600,000.

Now, Fidelity is offering A$532,000 in exchange for a large issuance of new shares (and the associated dilution).

How long does this $532,000 last?
➔ About 27 days under the new cost structure.

That's it.
Less than a month of extra runway — even after cutting 70% of the workforce.

Key Takeaways:

• FBR would still need to raise more capital almost immediately after the Fidelity deal closes.

• Dilution risk is extremely high, and the shareholders get very little real breathing room from this injection.

• This raises the obvious question:
  ➔ Why are other options like asset-backed financing against the estimated A$30–50M IP portfolio not being pursued first?

If anyone can provide a reason why raising just 27 days’ worth of cash through heavy dilution is preferable to leveraging valuable existing assets, would love to hear it.

The numbers speak for themselves.