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AVZ

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78.0¢ avz minerals limited

Total outstanding on issue for the listed options is 186,587,382...

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134 Posts.

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30/04/20

11:20

Post #: 44347501
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Originally posted by Scarpa: ↑

Ok, and understand your views, but still not clear why we would enter into such an agreement given where the heads price is and the fact options are currently in the money. But certainly can see the point why you might do this now, if want an orderly exercise process that does not affect the SP.

I can't see the majority of options been unexercised by the way, so are AVZ simply worried that the heads price might fall a bit because some investors will be selling heads to convert options? I presume that is the reasoning here based onyour posts.

Now below is one of these Agreements that guarantees the funding with a 6% underwriting fee by the looks of it (ie if we are to pay a 6% underwriting fee the decision for that and reasoning needs to be divulged to market IMO). It also would appear the underwriter has first dibs at keeping any unexerscised options and convert them to heads for themselves, so will be very very interesting who this undewriter is.
https://collaboratecorp.com/wp-content/uploads/2017/02/1.26m-Funding-Secured-From-Option-Underwriting-Agreements.pdf

There are about 203 million options around with a conversion price of 3c, meaning around $6.1 million for AVZ - at 6% underwriting fee reduces that amount to about $5.7 million. So I guess the questions from me are:
1. Is this a partial or full underwrtiting of the options?
2. What is the fee attached?
3. Who has first dibs on the unexercised options in converting them to heads?
4. And obviously who is the underwriter and what future will they play in AVZ?

All willbe revealed I guess when the TH edns.

Thanks for the explanation. It puts in place some intrique now LOL.

All IMO

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Total outstanding on issue for the listed options is 186,587,382 as at the date of this report.
The listed options will expire on 24 May 2020 and based on the current share price, the
Company expects the outstanding listed options to be exercised, raising a further A$5.6m.
The Company is still engaging with Yibin Tianyi Lithium Industry Co, Ltd to negotiate
alternative methods of investment into AVZ through subscription for shares.

AVZ Price at posting: 5.9¢ Sentiment: Buy Disclosure: Held
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