Not the best look when directors sell, but it's not the end of the world for AVZ.
I think most of us expected Klaus to hold every share until a take over, but he still owns 63m shares which is decent and was two directors selling with the other only selling off 2m shares. As some have stated, this was their only window of opportunity before the Sept Qtrly and further news and developments start to come, as well as in the event a takeover is coming much sooner, they obviously wanted some free cash, with Klaus going into a new venture.
No big deal once you take a deep breathe, calm down and look at the facts.
I'd have been more concerned if Klaus sold all shares on market, but someone/ an entity wanted 10m of his shares and they were happy to pay 15c a share for them, so the question is why and who that buyer was?
Airguide have publicly stated it was to a strategic investor.
Klaus hasn't just sold them off to some randoms and duped them into buying 10m shares at 15c for a cool $1.5m and it wasn't a last minute decision either, so it's something that was planned with this buyer and for this particular window of opportunity for AVZ's two directors to let go of some shares.
Could be the start of things being put in motion for a takeover coming, at what price who knows, could end up a low ball offer for $200m, not likely given the size of the resource and the tin credits or a middle ground value of $500m which is around 25c or $800m which is 40c.
Airguide publicly stating not selling until 25c-30c level and then re-evaluate.
The other key factor is the resource is still there, so it's not some spec stock that's going to crash down to shell value. AVZ still has their massive lithium resource 1Bt-1.2Bt 1.5%Li20. Historical data still there.
Those last drill results haven't magically disappeared.
Huayou Cobalt invested strongly for 186m shares with their $13.2m and have a further $18.6m to inject with their 186m options exercised, far bigger holding than any of the directors.
Dathomir own 240m shares as well, again far bigger holding.
If these two start selling, then maybe something isn't quite right, but they aren't selling as they know the value of AVZ's lithium resource.
Airguide also not selling anything, publicly stating so yesterday.
Nothings changed other than two directors selling some shares, with 10m of those off-market at a premium to 15c to what AVZ's consultant Airguide have publicly stated is a strategic investor.
AGM coming up, company will have a clean slate, which I saw someone posted a response from Airguide also stating that.
Meaning they will be able to issue more shares to investors for more financing, whilst we get diluted a little more, who ever it is will either be Huayou again or another Chinese party wanting in. Good chance Huayou won't let someone else get in cheaper than they did, especially after further results have now been released and proving up the resource.
AVZ still own 100% of the surrounding Pegmatite Extensions, which on the map appear to be bigger than the Manono and Kitolo Pegmatites.
Hole 7 results still to come, the monster of manono.
Next drill campaign
Potential MOU's
Further Financing from potential investors who want this lithium resource.
Take over from a big player, potentially between $200m-$800m at some point.
Trading perspective, could see a drop on some panic selling, but end of the day the resource is there and it will see it's value come to fruition at some point.
Not much to really fear once you digest the situation and look at the facts of AVZ.
Enjoy the weekend everyone and relax.
