Is this true even if the single passenger fare is less than the FFC?

For example, if I make the cheapest non-refundable reservation I can find in order to use expiring IHG TravelBank funds and then cancel after 24 hours, I understand I'll get a FFC for the value of the ticket, presumably something around or under $100. You seem to be saying that I could not use that FFC for a reservation for two people, even if the new reservation is for more (probably much more) than double the FFC. Am I understanding this correctly?

If I'm understanding the situation correctly, then I would make two reservations, one for me (using the FFC) and one for P2, and make those reservations early enough that I could get two seats together. Is that correct? Thanks for any help.