I feel the offer is all above board but would like to see a...

I feel the offer is all above board but would like to see a significant ROC on the $30m raised to make the whole exercise worth it.

AVJ's land holding would no doubt be the security against its debt and its favourable cost of debt would be thanks to the low LVR's attributable. i dare say AVJ couldn't just pull a lever and borrow an unsecured $30m working capital loan at 5.7% otherwise they would have surely opted for that.

i will participate in the raise and i took the opportunity to triple my original holding today at 26.5c not because im overly bullish on AVJ but at a 35% discount to TERP it seemed mispriced. I'll reduce to near my original holding size when it invariably trades closer to its 35c TERP as the dust settles, which will represent the now familiar ~60% discount to NTA.

The additional shares issued may add some much needed liquidity to the stock too.