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.
(20min delay)