'With a capital raising to come it's interesting that the number of shares on issue has increased 5x in that time! That's some serious dilution.''Number of shares on issue at Manono acquisition. ~560m as at 13th April, 2016.'So folks, here again we see another prime example of a non-holding troll making false and misleading statements. And this is not IMO btw, but rather the absolute truth of the matter.
To explain,
@BOT has mischievously extracted some 'then vs now' 3B data and concocted a make believe / scaremongering story designed to
make shareholders
believe that since the 'Manono acquisition' they have been diluted by
5x and will continue to be diluted to kingdom come.
However, as usual the FACTS present a very different story.
First Fact: Upon completion of
'Settlement Of Transactions To Acquire Manono Project Interest' on
23rd May, 2017 (refer:
https://www.asx.com.au/asxpdf/20170523/pdf/43jfwnkwwy9dgv.pdf ), AVZ had a total of 1.454 billion shares on issue and a further 300 million options. In order to pay for and complete the 60% acquisition of the Manono project, a total of 565 million shares and 300 million options were issued.
Second FACT: The 13th April, 2016 (BOTS misleading & incorrect reference date for the 'Manono acquisition') was at a time when the company was;
a) still five months away from acquiring 100% of the Manono Extension project (tenements surrounding the Manono License but not to be confused with Manono (eg. Roche Dure, CDL etc.) itself and;
b) still 9-10 months away from agreeing to acquire 60% of the Manono project, subject to certain conditions. Interestingly, Nigel Ferguson was also still 9-10 months away from joining the Board of Directors and being appointed Technical Director of AVZ (i.e. before he later became MD in 2018).
Thus the rate of dilution since acquiring Manono on 23rd May, 2017 is
65% (or an additional 950 million shares approx.) i.e. far less than a rate of 2x let alone 5x
. Furthermore, if you combine the shares & remaining 'in the money 3c options' (due to expire at the 24th of this month), then the REAL 'then vs now' rate of dilution is reduced to
47.5% in 3 years. i.e. less than a 50% increase in total dilution since the 'settlement of transactions' to acquire 60% of the Manono project in May 2017.
When you think about how far AVZ has come since then (eg. extensive drilling campaign >> delineating a 400mt JORC compliant resource >>2mtpa SS >> 5mtpa SS >> CDL drill campaign and confirmation of a another major pegmatite >> option to acquire further interest in the project >> transparent met tests >> Lithium Sulfate, Hydroelectric power, alluvial mining and social development plan, SEZ MOU and plans for a PPP >> delivering a DFS with conservative yet outstanding financials with further room for significant improvement, building a competent executive team... and the list goes on) then the above REAL rate of dilution is actually a pretty reasonable result IMHO.
GLTA and IMO please be mindful of the blatant misuse of company statements (eg. individuals combining the selective cutting & pasting of company excerpts and adding in their misleading headlines or comments) by non-holding trolls. IMO it's a real shame that HC don't;
a) include the blatant misuse of company statements on their website as part of their 'Breach Of TOU' and;
b) relax their hardline approach with respect to well researched shareholders calling out the BS and questioning the motives of those mischievous individuals who clearly seek to continually and unreasonably damage the reputations of companies, their directors and companies' shareholders.
Cheers
Elpha
