Staff at Hatch owner FNZ revolt over ‘grossly unfair’ capital raise

FNZ Group chief executive Blythe Masters has been holding meetings on the catch-up raise. (Image: FNZ)

Hundreds of employee shareholders at fintech FNZ, which owns investment site Hatch, are fighting back after discovering their holdings could be diluted heavily after a capital raise last year, BusinessDesk reports.

One shareholder said the move was “grossly unfair”, especially as management was not ruling out further dilution.

“Some of the shareholder valuations were in the millions – and it has just disappeared,” said another employee shareholder whom BusinessDesk agreed not to name.

“I’ve had people come to me with tears in their eyes saying, ‘This is my retirement funds gone’,” the longtime shareholder added.

FNZ has told shareholders, “investment by institutional shareholders is required for FNZ to protect our existing value”.

“The FNZ Group board, after seeking independent advice, unanimously approved the fundraise, recognising it as being in the company’s best interests to support FNZ’s long-term growth strategy and clients,” it said.

Read more on BusinessDesk here.