While investors look through the fate of the troubled Technology company, Big UN, Nick Jordan, the chairman has been asked to be the executive chairman effective this week while the company has been on the hunt of a new chief executive for quite some time. The group is undertaking negotiations in relation to identifying a prospective buyer for the Big Review business. Amidst all the developments and downfall, the group that was once valued at $700 million towards the end of 2017, was seen to crumble to about half of the market capitalisation; and investors by now, know that their hard-earned money has been wiped off. From what was seen as an investment of just over $40,000, punters could make returns over $1 million with support from growth of the initially labelled penny stock.
It is only a few days earlier that Big Un’s CEO Mr. Richard Evertz resigned from the company after its main business unit, Big Review TV was placed into voluntary suspension. The Board has accepted his resignation. Recently, Big Un informed the market that the directors of Big Review TV Ltd (BRTV), a wholly owned subsidiary of BIG UN, have placed BRTV into voluntary administration. The purpose of BRTV entering into voluntary administration is to allow for the restructure of its business through a Deed of Company Arrangement and protect the value for investors of BIG Un Limited. BRTV has primarily received notice that FC Capital has assigned all its interests in the Sponsorship Agreement dated August 2017 with BRTV to AS Capital Ventures Pty Ltd. Further, FC Capital has advised the Board of BIG that it has agreed to assist AS Capital in its efforts to work with the Board of BIG to help the group restructure and preserve value for shareholders of BIG. The board of BIG thus started conducting ongoing negotiations with AS Capital to effect, an agreement that is intended to release each other from all claims and under which the debt owing to AS Capital by BRTV (pursuant to the Sponsorship Agreement) will be discharged. Big Un Limited will operate the BHA Media Pty Ltd and Food and Beverage Media Pty Ltd businesses, which will continue to be run by existing management, from existing premises.
Meanwhile, the company provided an update on corporate spotlight offering with Big review TV Limited wherein HotCopper had entered into a partnership agreement with Big Review TV Limited, for the joint marketing and sale of video licensing package to each party’s respective clients. This agreement was said to be non-binding and did not contain any restrictiveness conditions or otherwise tie HotCopper to BIG or BRTV other than income share arrangements for services jointly sold. Since HotCopper does not have any reason to believe that the details set out in the BIG announcement dated 22nd May 2018 concerning the voluntary administration of BRTV has any material impact on HotCopper, it continues to offer video services to its clients and these services are delivered by service providers other than BRTV or BIG. HotCopper does not expect any revenue or profit impact related to announcements by BIG.
Big Un Limited’s shares that are under suspension, traded last on February 16, 2018 at the price of $2.22, implying a market capitalization of 388.85 Mn. The shares were suspended from official quotation after the ASX enquired about its unusual financial arrangement with FC Capital that advanced funds to Big Review TV before customers had agreed to use its service.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.