4 questions lodged at 2025 Flynn Gold hybrid EGM
April 16, 2025
Below is the text of the 4 written questions submitted at the 32 minute Flynn Gold (FG1) virtual EGM via this Zoom link on April 16, 2025 to approve share issues. Market cap $7.7m on day of the meeting. See notice of meeting and voting results with no protests. No formals lodged with ASX so no early proxy disclosure. All up, this was a good meeting with no question censorship and helpful detailed answers provided.
Q1. The latest accounts show that we've wracked up $20.5m in accumulated losses and only have $433,000 in net assets remaining. The market cap is $7.7m today so this listed company has so far lost shareholders about $13 million. Where did the money go and what mistakes have been made in the past? In terms of size and structure, how does this capital raising compare with what we've done previously?
Answer: The question wrangler, Mathew Watkins from Vistra, guided that only the last part had to be answered and the chair gave a reasonable summary, including that they did raise 118k from an SPP two raisings back. Watch video of exchange via Twitter.
Q2. Bell Potter has a long history of structuring capital raisings that favour big end of town investors and dilute existing retail shareholders. They've done it again with Flynn Gold. Why weren't your more than 900 retail shareholders offered a $30,000 share purchase plan to enable them to participate in this capital raising on the same terms as the Bell Potter institutional and sophisticated clients. It's not too late to make amends. Will the board give serious consideration to offering an SPP before the next AGM?
Answer: The chair gave a good summary of the Bell Potter history, including that other smaller under-writers had pitched, offering a larger fee. Watch video of exchange via Twitter.
Q3. It seems a bit steep to be paying Bell Potter 6%, plus giving them free options. Did we market test this pricing with any competing under-writers and what is our full history with Bell Potter? Have they directly owned or traded in our equity previously and who in particular at Bell Potter have we been dealing with on this raising?
Answer: The chair clarified that the fee didn't apply to the major shareholder's 310% stake and said rival under-writers were demanding a bigger free options grant. He said Andrew James from the Bell Potter Perth office was the key contact. Watch video of exchange via Twitter.
Q4. What is Colin Bourke's history with the company? Is he at the meeting and could he address this question?
Answer: Colin wasn't on the call but the chair provided a good summary, saying the 31% shareholder effectively co-founded the company, had backed it all the way and traded through Bell Potter, hence was helpful in securing with the under-writing arrangement for the latest raise. Watch video of exchange via Twitter.
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