Ann: AVZI Successfully Defends Against Jin Cheng ICC Proceedings, page-270

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h00ts

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24/03/24

20:03

Post #: 73034186
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Originally posted by Rattlerock ↑

Have you read the conditions outlined in term sheet sf120 (in bold below)?

It's pretty clear that March 31st carries significant importance. They're calling it a 'Binding Term Sheet,' but it seems like AVZ is the one getting bound tighter than Locke. Locke can bail out of the deal whenever they feel like it, leaving AVZ to foot the bill, possibly up to US$200k in costs. But if AVZ wants to call it quits and not proceed with the term sheet, they're looking at a whopping break-fee of US$1,000,000.

A sudden last-minute decision by Locke seems unlikely as it wouldn't be fair to AVZ, given the exclusivity clause in the agreement that restricts AVZ from exploring other funding options unless the term sheet is terminated.

So, by now, you'd expect AVZ to know whether Locke is in or out, even if they haven't made it public yet. On the flip side, it's possible Locke pulled the plug a while back, rendering the exclusivity clause moot and freeing up AVZ to explore other funding options.

We'll get the answers we need next week and finally know where our funding future lies.

In the event that the Term Sheet is terminated by AVZ, by Locke on the basis of due diligence, or the formal agreement is not executed by 31 March 2024 AVZ must pay Locke’s reasonable costs in relation to the Transaction capped at US$200,000.

A break-fee of US$1,000,000 is payable to Locke by AVZ in the event that AVZ terminates the Term Sheet at any time

AVZ must not enter into negotiations with any third party in relation to the funding of Proceedings from the commencement to the termination of the Term Sheet

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Amazingly refreshing for this forum a stock holder who can look at the situation analytically as it is and not how they hope it would be.

SF120 has pulled me up numerous for fact checks yet he states as fact that funding is a certainty when there has been no announcement to back up this stated fact which is not a fact but simply his personal opinion on the topic. ( hopium )

AVZ Price at posting: 78.0¢ Sentiment: None Disclosure: Not Held
3 Upvote

0 Great analysis

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