Ann: Merger Presentation, page-497

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sabine

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10/10/23

11:00

Post #: 70262837
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Originally posted by RhysT ↑

Is that correct of TMT's price being capped?

Given it wasn't a cash offer of 32.5c which absolutely would have capped it, it's 1:12 AVL share conversion.
i.e. if AVL went to 4 cents, isn't buying TMT above 32.5c going to still be cheaper than buying AVL?

My understanding is we are locked in to AVL's price at a ratio of 1:12, that's it, so it just means each SP would generally move up and down in step with that ratio, give or take a little, until we get close to a vote where traders will be taking advantage of any slip in TMT's price under that 1:12 ratio with AVL's price, to get the instant profit when conversion happens.

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Rhys I am not a legal expert however I assume that the terms of the offer - announced September 25 -
https://cdn-api.markitdigital.com/a...pdf?access_token=0007i0I92FJhlvHkWBnpDN1QqKDZ
- were set on that day based on an AVL price of 2.7c !

All documentation has been prepared as to that date, and for RCF it represents the translation of its near 46 million shares in TMT at a (hopefully) excellent price, as well as setting it up for that $15m worth of AVL shares, immediately after the merger proposal, one point lower at 2.6c.

Maybe there is a legal expert out there?

Cheers

Last edited by sabine: 10/10/23

TMT Price at posting: 25.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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Ann: Merger Presentation, page-497

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