You're thinking of lawyers fees, they get a % of compensation...

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01/05/24

14:29

Post #: 73609841
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Originally posted by Rattlerock: ↑

You state giving up the 15% stake to Dathomir and getting the $20 million in escrow back might end up costing billions, that might be true if there's a huge pay-out.

As a shareholder though, you need to think about which option might have the biggest impact on your back-pocket.

Option 1: Giving up the 15% stake and using the $20 million from escrow to cover the litigation costs. This option might mean a smaller payout because AVZ would own 15% less of Dathcom.

Option 2: Going with the Locke funder route. These funders usually take 20-50% of any pay-out. According to Nigel, the due diligence is done, and now they're just working out the terms of the formal agreement. Does it seem strange to start discussing terms of payment now after 5 months of due diligence? What choice does AVZ have now?

Time has run out for AVZ, they don't have little power to negotiate and might have to accept whatever terms Locke proposes. So, option 1 could reduce your return as a shareholder by 15-20%, while option 2 could cut it by as much as 50%.

What's you preference?

By the way, I still have doubts about whether Locke will actually provide the funds. Just because Nigel said it's a done deal in the last quarterly report doesn't mean it actually is. You should have learned that by now.

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You're thinking of lawyers fees, they get a % of compensation payouts.

This is litigation funding, there's a fixed return on their loan. It'll be very steep but that's common for litigation funding.

No it doesn't seem strange, whats strange about it?

Read the quarterly, we are still good until september, no rush on this funding.

Who cares if you have your doubts, you doubt everything, good on you.

AVZ Price at posting: 78.0¢ Sentiment: Hold Disclosure: Held
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