I am not questioning any of what you mentioned please read my question again. I would appreciated someone to give a good response, if there is one!
I have done my DD on FFGO and a few of things just do not add up. I am hoping someone here can explain them to me.
The first question is that they repurchase over 50% of their stock and got the outstanding shares down to 33 billion. Then they turn around and issue shares @.0001 to retired debt, in the amount of approximately 40 billion shares. So why didn't they simply retired the debt instead of repurchasing the shares? It does not make sense. They more than double the shares outstanding to retire about $4 million in debt which will be worth about $120 million after the one time dividend
The second question is in reference to the Sloane Investment and their 13 d filing. This filing indicated that Sloane purchase 17.6 billions shares of FFGO from Searchlight and other private investors @ .0035 for investment purposes. Why would someone buy @ .0035 when the market is .0001 and the one time cash dividend is expect to be less than .0035/share?
The third is not a question but an observation as it relates to FFGO current ownership. Sloane's investment which is held in certificate form represents 23.6% of the outstanding shares. The debt holders that were paid off with shares at .0001, represent about 54% . If you add the debt holders and Sloane investment in shares together you will find between the two they own over 77% of the outstanding stock, Of course this assumes the debt holders have not sold any shares. That means there is less than 23% available for public share holders.
This may be a great deal, but it just does not smell right, so any one that can explain these unusual actions by ffgo will be greatly appreciated. TIA
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