On 30 August 2021, the FSI Board announced the proposed issue of Convertible Notes. The Directors believed that the issue of FSI Notes would provide the ability to increase the overall size of the investment portfolio without diluting existing FSI Shareholders. The additional capital would be deployed in accordance with FSI’s existing investment mandate and investment process.

The Issue of the Notes was extremely successful. Brokers, Financial Advisors, Family Offices, and investors as well as many FSI shareholders and all its Directors applied for Notes. Supported by Joint Lead Managers Morgans Financial and Taylor Collison the entirety of the $20m issue was subscribed for within days of the Notes becoming available.

Issued at $2.70 per note under the ASX Code “FSIGA” the Flagship Investments Convertible Notes closed on the first day of trading at $2.87 providing Noteholders with an immediate 6.3% uplift on the value of their Notes.

On the 5th of October FSI released its September NTA at $2.81 per share.

The Board of FSI welcomes all 282 Noteholders to its share register and looks forward to welcoming new Shareholders to the register as the notes are converted at any time from the second anniversary of the issue date of the Convertible Notes until 17 September 2026.

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Purpose of the Offer
  • Grow the size of the company
  • Increase the visibility, recognition and relevance to stockbrokers and financial planners
  • Expand the coverage by research houses
  • Reduce the MER and ICR ratios by spreading the limited fixed costs of operating the Company across a larger asset base
  • Expose the company to a new and a wider pool of investors
Benefits to Investors
  • Reduced share investment risk through a quality investment portfolio
  • Top quartile investment performance since inception
  • No historical gearing on the balance sheet
  • Professional, disciplined management of an investment portfolio by EC Pohl & Co’s highly rated and experienced team
  • Anticipated continued growth in fully franked dividend income
  • No fixed management fees: – the Manager is only remunerated on a performance basis
  • 1:1 Conversion ratio of notes to shares
A ‘Thank You’ Note

We would like to thank our shareholders who took interest in Flagship Investment’s convertible notes. We look forward to the investment returns in the long-term flowing to both Noteholders and Shareholders alike.

Flagship Investments Limited (FSI) invites you to participate in the FSI Convertible Note Offer. The listed, redeemable, unsecured convertible notes (FSI Notes) are an invitation for new investors to take an interest in the business and to provide existing Shareholders with a further avenue to benefit from their ownership in the Company. The Offer is subject to Shareholder Approval which will be sought at the Annual General Meeting of the Company.

This Prospectus contains further details of the Offer, the terms of the FSI Notes and a description of the risks associated with an investment in the FSI Notes and FSI. It is important that potential investors read the entire Prospectus carefully and consider the risks before deciding whether to participate in the Offer.

Overview of the FSI Note Terms:

The proceeds from the FSI Notes will be fully incorporated into the FSI Investment Portfolio and deployed in accordance with the investment mandate and investment process. To date, the Company has enjoyed enviable success, culminating in an investment performance which establishes it as a leading performer in active management.

FSI looks forward to extending the long-term benefits of ownership to existing Shareholders and welcoming new Investors to the Company. If you have any questions in relation to the Offer or how to apply, please email the Share Registry at enquiries@boardroom.com.au or call the FSI Notes Offer Information Line on 1800 352 474 (within Australia) or on +61 7 5644 4406 (International) Monday to Friday 8:30am to 5:30pm, Brisbane time.

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