FOBI AI Inc.: Applying for Another Variation Order to Modify Convertible Debentures
Vancouver, BC, March 03, 2025 – FOBI AI Inc. (FOBI:TSXV, FOBIF:OTCQB) (“Fobi” or the “Company”) has recently announced that it has applied to the British Columbia Securities Commission (BCSC) for a Second Variation Order. This application comes after the Partial Revocation Order granted on December 30, 2024, and the First Variation Order granted on February 14, 2025.
Background of the Current Situation
For those who might not be aware, Fobi is a technology company specializing in providing real-time data analytics through its proprietary IoT devices and mobile applications. In November 2024, the BCSC issued a Failure-to-File Cease Trade Order (FFCTO) against Fobi due to its inability to file certain required documents on SEDAR. Since then, Fobi has been working to resolve the situation and regain compliance with securities laws.
The Proposed Change: Modifying Convertible Debentures
Now, Fobi is seeking a Second Variation Order to change the conversion price of the convertible debentures under its proposed private placement offering. The Company explained that this change is necessary due to market conditions and the desire to provide a fair conversion price for investors. However, it’s important to note that this application does not affect the FFCTO, which remains in place.
Implications for Fobi Investors
If the Second Variation Order is granted, existing debenture holders will see their conversion price change. This could potentially impact the value of their investment, depending on market conditions and the new conversion price. For new investors, the change in conversion price might influence their decision to invest in Fobi’s private placement offering.
Impact on the Wider World
This situation at Fobi is just one example of the complexities that can arise when companies fail to file the necessary securities documents on time. While Fobi’s application for a Second Variation Order doesn’t directly affect the broader market, it highlights the importance of timely reporting and transparency for investors. It’s a reminder that companies have a responsibility to keep their shareholders informed and up-to-date.
Conclusion
Fobi AI Inc.’s application for a Second Variation Order to modify the conversion price of its convertible debentures is a significant development in the ongoing saga surrounding the Company’s failure-to-file cease trade order. This change, if granted, could have implications for both existing and potential investors. As always, it’s crucial for investors to stay informed and keep an eye on such developments. With the FFCTO still in place, Fobi continues to work towards regaining full compliance with securities laws.
- FOBI AI Inc. applies for a Second Variation Order to change the conversion price of its convertible debentures.
- This application does not affect the ongoing Failure-to-File Cease Trade Order (FFCTO).
- Existing debenture holders might be impacted by the change in conversion price.
- The wider implications include a reminder of the importance of transparency and timely reporting for investors.
