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FGF - First Growth Funds

greggles

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FGF has been quietly moving up on no news. The only recent announcement I could find to explain the price movement is a Company Update released on 4 September 2017 which contained the following:

Management have been very actively recently reviewing possible transactions for FGF. The board has actively reviewed several deals in the emerging markets of blockchain technology, conversion of energy to currency and the use of crypto currencies to fund these initiatives. Furthermore, we are reviewing possible transactions in traditional sectors of technology and resources.

Management has recently been selling down the listed portfolio of stocks to ensure we are cash ready if we find a suitable transaction.
Looks like FGF could be a speculative Blockchain play. Any thoughts?

screenshot-shareinvesting.anz.com-2017-11-06-11-19-47.png
 

greggles

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FGF coming back down to Earth today after reaching a high of 2.2c on 16 November. It appears as though the digital currency exchange is going ahead but it seems that the terms of the deal did not live up to the market's expectations and FGF's share price has slipped to 1.6c today, down 27.27%.
 

greggles

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First Growth Funds raising $3.45 million to expand into Blockchain sector.

First Growth Funds Limited (“FGF” or “the Company”) is pleased to advise that it has entered a conditional placement agreement with Blockchain Global Limited (Blockchain Global) and other unrelated sophisticated investors to raise $3,453,990. The purpose of the placement is to raise funds to provide FGF with working capital and for funding to facilitate acquisitions of or investments in Blockchain technology, assets or businesses.

Placement terms

The Company has agreed to issue 282,257,907 shares at $0.012237 each (Placement Shares). The Placement Shares will be ordinary shares and will rank pari passu with all existing ordinary shares on issue. In addition, the Company has agreed to offer to investors in the Placement Shares a 1:1 attaching option exercisable at $0.03 within 2 years of issue (Placement Options). Full terms of the Placement Options are set out in Annexure A. A total of 282,257,907 Placement Options are to be issued.
FGF is up 88.24% to 3.2c so far today. However, I think the reaction might be a bit overblown. A read of the part of the announcement titled "Additional rights of Blockchain Global" shows that there are a lot of conditions attached to this deal. Not only that, but the issue of 282 million odd shares at 1.2c is a bit of a concern. That's a lot of shares at a significant discount. I'm not convinced about this capital raising at all, but the market seems happy with it.... for the moment at least.
 

System

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On December 4th, 2019, First Growth Funds Limited (FGF) was removed from the ASX's Official List in accordance with Listing Rule 17.11, after security holders resolved to remove FGF from the Official List.
 
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