Full Alliance Group Inc. (FAGI)

[Spifster]

I have been creeping on this board for a few months now and find myself with a significant (to me) position in this company. I would like to give my take on what I see.

The value of the Groupo Assets were $286.1 million in June of 2016. This was the value of the assets only. If we look at the PR from November, it states that "net equity of over $40 million" The Grupo acquisition had to come with a significant amount of liabilities in the amount of about $240 million. This also makes sense in regard to the purchase price for Grupo.

The question is what is the nature of this debt and will there be cash flow to service it.

If we take the a/s at full dilution (and how many companies issue the full authorized amount?), I see a book value of $.13. This does not factor in any future cash flow from these assets. At current o/s (I think is about 37 million shares) that values it at $1.08. Again without any revenue factored in.

Cash flow from revenue sources is what we really need to take off and not cash flow from financing. I am looking forward to the annual report to see the nature of the debt and the revenue that we should be seeing now.

It was nice to have verification of the Grupo deal with the letter from Ramon. The Wincon and DiMora pods deals are a bit suspect. Hopefully we will see the promised revenue from the Wincon deal on the annual statements, but they are not listed on the website any more. As for DiMora, the deal was canceled during the Due Diligence Phase and was reported on one of the quarterly reports.