The binding term sheet with Locke was announced over four months ago. Is Locke really waiting until the eleventh hour to complete their due diligence and negotiate a formal agreement with AVZ?
One thing's for sure: if the term sheet had progressed to a formal agreement, AVZ would have let us know. However, AVZ has never been forthcoming with bad news. Maybe Locke has already terminated the term sheet, and AVZ management is scrambling to find an alternative solution. Perhaps they're in desperate communication with the ASX, making a case for relisting to gain access to a CR.
I'm sorry for being so suspicious of management, but I invested when the share price was high, and management's disclosure of issues was poor. I simply lack confidence in their communication, or lack thereof, with shareholders.
Let's hope for some news on the Locke funding soon, and my suspicions to be proven wrong.
AVZ Price at posting:
78.0¢ Sentiment: None Disclosure: Held
