Ann: Axiom Mining Loyalty Bonus Issue, page-162

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17/02/16

06:30

Post #: 17037523
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Originally posted by guspoyet ↑

I still feel everyone is overthinking this

1. AVQ offer loyalty bonus (options) for those who continue to hold (enough shares) from an action date (approx the AGM date) to an exercise date (cash flow positive) at a fixed price(at an estimated price lower then what the market price will be).

2. This is to keep the sell side dry

Interesting tactic

If you sell before the exercise date you lose out

The interested parties for AVQ for this tactic are holders who have high number of shares.

This is not a loyalty bonus for the past in my opinion.

But in reality this tactic actually helps smaller holders by enticing the bigger holders to not sell.

Lets say someone has one million shares and you have 10,000

You want to sell when AVQ is at one dollar

If the one million shareholder gets in front of you then the price might have dropped to 70 cents by the time your sell order of 10,000 is filled.

I think we should try to stop the romance of a mining company caring about its long term small shareholders. It's not realistic and is very strange...

For those who are pissed... perhaps providing certain shareholders with advantages over others might be unusual, but in reality from my perspective you may still be rewarded when you go to sell.

Additionally, you should note that AVQ has been in litigation for so long, it must look at ways to keep bigger shareholders onboard after the victory dance.

Using the terminology 'loyalty bonus' in my book was wrong...they should have just said (Campaign to retain major long term shareholders) and been more definitive like... 'any holder who holds shares for 2 years after the CoA decision gets a bonus ...'

IMO ... Am I missing something here?

Gus

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"Am I missing something here?

Yes, did you read the announcement? It is just small share holders getting screwed!

There is nothing saying these large shareholders have to retain any shares after the options are issued. They can dump their main holding and keep the options. The company don't care if anyone sells, as after they win the court case institutions can get on board.

So your entire post was missing something.

AVQ Price at posting: 26.0¢ Sentiment: Hold Disclosure: Held
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