I read through all AVZ’s anns since 2/10/2016 when Klaus Eckhof was appointed Managing Director and made some notes on how the number of shares / options (listed & unlisted) / performance rights developed since then.
My notes are included in the pics below my name so each can judge for themselves (if interested). A box refers to an event where shares were issued, options converted, performance rights given or converted, etc. A box has a specific date (when ann came out), although sometimes the info in the box is compiled from several anns around that time.
I’ll leave any speculation / interpretations to others but will summarize some highlights.
When all performance rights are converted (likely given the low thresholds) the fully diluted number will have tripled from 764 million to 2,273 million within a year. There are close to 85 million performance rights (some of which have been converted and some still to be issued, as per Monday's ann) and another 60 million shares were awarded to "third Parties".
In detail:
Nigel Ferguson’s performance rights are in yellow in the pics below:
- The recent 12,000,000 for becoming MD are listed toward the bottom
- He also received 30,000,000 earlier (23/5/17 ann)
- These 30,000,000 can be converted in 3 tranches
Tranche 1: 10,000,0000 converted if 10-day VWAP ≥ 3c
Tranche 2: 10,000,0000 converted if 10-day VWAP ≥ 5c after 12 months from issue
Tranche 3: 10,000,0000 converted if 10-day VWAP ≥ 7.5c after 12 months from issue
- The 10,000,000 of Tranche 1 have already been converted. Presumably, the 20,000,000 of Tranches 2 and 3 will be converted when the 12months condition is met (late May/early June).
In total, Feguson received 42,000,000 Performance rights (in addition to $300K annual salary)
In yellow in the pics below are two other board members:
Patrick Flint: 10,000,000 performance rights (already converted)
Rhett Brans: 4,500,000 performance rights
Finally, “employees of AVZ” (in grey) received 5,000,000 + 4,350,000 = 9,350,000 Performance rights
Not sure who they are (or what they have done).
JNS received 3,000,000 performance rights (already converted).
- Ostensibly this was to raise awareness among North-American investors and/or to bring new parties to the TO table (“Captain America”?).
- In this post 30481783 I pointed out that JNS is a single-person company, Jag Sandhu, who serves with Klaus Eckhof on several other boards.
Aurguide received 15,000,000, half of which have been converted to shares.
- It appears that of the 7,500,000 shares, Airguide sold 4,000,000 in January
The most interesting entry is the “Third Parties” entry in dark blue who received 60,000,000 shares (not performance rights). These are:
- Andreas Reitmeier, who received 40,000,000 shares
- Mark Gasson, who received 20,000,000 shares
Who are Reitmeier and Gasson? They appear unrelated to AVZ but both have worked with Klaus Eckhof at various other coys. Including De Beira Gold (now Panex Resources, with Gasson as CEO), MyCasino and adultshop.com.
For those interested in exploring how these companies fared, Maigret1’s HC posts are helpful, see e.g. 21639050
All the above is based on public info, just reporting without speculation. But maybe just to echo Scarpa’s words of caution (e.g. 29326412) that an inferred resource is not the same as a measured and indicated resource… In the de Beira case, the SP apparently rose 2,000% but the current SP (listed under Panex Resources) is quite a bit lower...
IMO and GLTA
Columbo
AVZ Price at posting:
26.5¢ Sentiment: Hold Disclosure: Held
(20min delay)