Good find. I like the way that bloke writes - his commentary on GSW was thorough and clear too.
A small (incomplete) summary, for those playing at home:
- BIG has bent some facts and figures to appear bigger than they are
- These have the potential to undo the whole company, as their market cap (peaking over $500M) was based on a solid set of sales numbers for the Dec17Q.
- Those sales figures appear to just be a very complicated loan arrangement involving a third party company (FC Capital)
- FC have been associated with a number of dubious individuals (some of whom were given shares for ‘services’ rendered)
- FC also appear to be holding all the power in the relationship (eg 24% commission, guaranteed repayments, 100% owner of the companies assets until 2041 etc)
- Shares have been issued to FC and to various friends of BIG and these transactions were not disclosed to the market or the regulator
- the true nature of the financing arrangement was also not disclosed
A key point in the 10FootInvestor article appears right at the start, when the most recent suspension notification is referenced:
“BIG... remain in suspension... etc etc... pending a review by the ASX and ASIC”
As pointed out, ASIC was not mentioned in any of the (later) GSW announcements, so it is now quite likely that this will get even worse for BIG management and holders.
Another tragic one.
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