Tech Play Fandifi Technology (FDM.V)

Marc Challande
4
minute read

Fandifi Technology (FDM.V)  is a new social engagement tool for creators and fans that enables deeper connections with live content. The company has built the leading Fan Engagement prediction technology that encourages and rewards users. Its platform turns casual fans into Superfans by allowing them to engage with other fans, go deeper with their content, and be rewarded for their Fandifinity.

The company dived into an ample tech sector opportunity. There are 44M live views on Facebook, 164M videos watched on TikTok, and 694k hours of video streamed on Youtube every minute. FDM has many offers for Fandifi FANS, including social interaction, NFTs, engagement with stars/athletes, and its Fandifi PARTNERS, which can have a deeper access to audience data and new audiences targets, and many opportunities around NFTs.

The gamification and rewards engines will allow viewers to play and predict across a broad spectrum of their favorite live and pre-recorded events and get rewarded with NFTs for fan engagement. These events include MLB, NBA, NFL, NHL, major international Soccer leagues, Esports, and streamed and broadcast content from movies, music, fashion, food, and more.

Fandifi’s Strategy

Fandifi plans to capitalize on the current trends and build its platform at the intersection of live streaming, Esports, sports, and other broadcast genres with unique NFTs.
The intent is to collaborate with industry-leading producers and creators of unique content across various distribution channels. The innovative prediction and NFT rewards ecosystem will be deployed to increase overall fan engagement and facilitate the addition of new revenue streams to global

All the revenue streams are transparent:

  • Fancoins & NFTs: users earn Fancoins from viewing sponsored content, pre-recorded ads, and instream ads from international brand partners;
  • Transactions: streaming platforms will be able to white-label Fandifi’s proprietary micro-payments eco-system;
  • Data & Audiences: the company will be able to provide deeper connections for brands, channels, broadcasters, and events to help users grow their reach and engagement.

On April 20th, the company announced it partnered with the digital media Yoruba Media Labs. Yoruba works with brand clients to reach audiences creatively, including developing original content/IP that can play out in the tech, gaming, and ad spaces. Fulwell 73 (a British television, film, and music production company based in London) is a majority owner of Yoruba.

“Partnering with Yoruba opens doors for FandifiTM to collaborate with industry leading producers and creators of unique globally recognized content across a variety of distribution channels. Our prediction and NFT rewards ecosystem will deployed to increase overall fan engagement and facilitate the addition of new revenue streams to global content creators.”

David Vinokurov, CEO.

Share Structure/ Fundamentals

There are 82M shares outstanding, for 126M shares fully diluted. It is common to see this data above 100M as companies traded on junior exchanges need to raise money through private placements, diluting their capital structure. According to their last financial statement (three and nine months ended October 31st), there are 35M warrants at a weighted average exercise price of $0.29 and 8.5M options at a weighted average exercise price of $0.25.

The company also has a strong balance sheet. It is very positive with $6M in total assets, including $4.2M in cash and cash equivalents for no debt.

Their two most significant expenses are consulting & management fees ($238k) and the platform development costs ($251k). However, Fandifi hasn’t reported any losses for the three months ($0.00).

The stock is currently traded at $0.215 for a $17M market cap. FDM has a 52-week high of $0.325 (reached on April 26th, 2021) and a 52-week low of $0.10 (reached on November 4th, 2021 ).

The stock started an uptrend movement recently, according to the chart, on March 29th, 2022. Indeed its simple MA (20) sits above its simple MA (200). The stock is also healthy regarding its RSI data. Its RSI is at 45, which means the stock is neither overbought nor oversold (above 70 or under 30).

Besides, we could see some daily fluctuations. The Bollinger bands indicate that short term, we could see variations between $0.20 to $0.25. Level 2 confirms this information. Indeed, there are five buying orders at $0.20 for 477k shares. Even if the stock price reaches this value, these orders will provide a strong support zone to investors. There is also a big wall at $0.75. On July 30th, 2020, the company closed a private placement, granting stocks, warrants, and a specific clause. The warrants are subject to accelerated expiry in circumstances where, at any time commencing four months from the date the warrants are issued, if, for the preceding five consecutive trading days, the daily volume-weighted average trading price of the company’s shares is greater than $0.75, in which case the Company may accelerate the expiry date of the warrants by giving notice to the holders thereof. In such a case, the warrants will expire on the 30th calendar day after the date of such notice.

The company saw its trading volume decreasing. Its 50-day ADV is at 421k, while its 10-day ADV is 175k. On April 22nd, there even were only 107k shares traded. These movements are not single to Fandifi. With market uncertainties, many investors took off their positions to jump into commodity stocks.

Bottom Line

The company has strong fundamentals, is building its platforms, and is diving into a promising sector. With investors who would instead invest in commodities than tech companies, its valuation is currently pretty low. Once investors circle back to tech companies, the stock will gain more and more traction. Quant Report gives FDM a fair valuation of $0.45, which leads to a 109% upside.