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.
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.