I am the only poster that is calling this debacle correctly. The rampers have been 100% proven false.
What you need to know
1. AVZ still needs China Government Approvals - this is mentioned in the 2nd paragraph - the poster that mentioned Leonard had told him this was approved was either lied to or was lying on Hotcopper. Read the announcement written in plain English.
What are the facts as we know them compared to the BS.
Apparently FIRB has "delayed" approval again - I do not believe this. In my opinion it is not logically and does not come under FIRB's remit. The FIRB approval threshold for "Acquisitions for Sensitive Businesses" is AUD 275 million -
https://firb.gov.au/resources/guidance/gn34/.
Approval for a placement of AUD 14.1 million does not come under FIRB purview on this basis. Let us face facts this a simple placement and not a acquisition nor is AVZ a sensitive business.
Why did FIRB approval not get delayed or was even needed in many cases where the quantum invested relative to the Australian company's market cap was far greater - example being Chinese investments into PLS, AJM, A40, etc, etc, etc, etc. These companies are actually operating in Australia !
I do not believe the announcement today in relation to FIRB approval, as it does not make sense.
Something stinks here and it was not picked up in my morning walk to the park. Nor the delicious blueberry I am munching.
I recon, for those that want a balanced opinion, re-read my initial post linked above.
Why does a 1 million convertible note satisfy FIRB when a 14.1 million placement does not??
Why does it take 114 days as stated in the announcement for approval??
Will it be done within 144 days which will be end of March 2020??
AVZ states they are going to talk to new parties..... the lolz are strong with this one..... Good luck... step in line behind AJM, A40 and Nemaska.
If as per the announcement AVZ management team did visit China in early January they should be quarantined !! as they are potential carriers of the virus !!
Before I stated you needed to by lucky, now dream on team. Dream on.
In my opinion the company runs out of money before March 11th when AVZ was expecting the money - as per the announcement. The convertible note - if the funds are cleared - may keep the company afloat to end of March and not trading whilst insolvent. It begs the question does AVZ have the money to complete the DFS by end of March??
Following this announcement today the delivery of the DFS by end of March appears increasingly like a stretch target they will not reach..
Facing reality is a great way to preserve capital......... if they can not do a simple placement can the AVZ dream team fund a mine / complete & run a special economic zone / solve transport / build and run a mine / rebuild a hydro plant..... I think not....
