Regardless of your viewpoint, it’s been challenging to get clear, honest answers from the board through this whole journey. Even their announcement on Tuesday stated after careful consideration, they chose against seeking relisting to safeguard shareholders' interests. What a load of BS!
Tuesdays announcement by the board
"After careful consideration, the AVZ board has resolved not to seek reinstatement on the basis a reinstatement at this time would not be in the best interests of AVZ shareholders"
However, It was made clear in the half yearly report released in March that they had full intention of seeking relisting
"the Company will consult with ASX regarding the reinstatement to trading of all its issued
ordinary shares on the Australian Stock Exchange (“ASX”), following which the Company will be in a position to more
readily raise capital to fund its ongoing exploration, operational and project development activities. Should the
suspension of trading in the Company’s securities on the ASX not be lifted by ASX by the point in time the need for
additional fundraising arises, the Company will look to alternative funding options"
The reason we were suspended was because of issues with disclosure, but the possible reason we we're not allowed to relist is we couldn't prove we have "ongoing operations." Basically, AVZ doesn't have any business activity happening aside from legal battles. This is the reason Sundance Resources got delisted, and it could be why we weren't allowed to relist. The board couldn't show the ASX that we have any real prospects for regular business.
The claim that relisting would allow the Chinese to buy the operation for pennies doesn't quite hold up. First of all, while FIRB doesn't have authority over AVZ selling a stake in Dathcom, it does over AVZ shares, and it's stepped-in before. Additionally, for anyone to buy the shares at a low price, someone would have to be willing to sell. If relisting had been possible, the share price would have taken a hit, but many shareholders would likely have held on rather than panic-selling at a fraction of the price.
So, In my opinion, if the board had been allowed to relist by the ASX, they definitely would have.
Rather than the board pretending to protect vulnerable shareholders with their BS statement, why not take a more honest, straightforward approach:
"The AVZ board has been in contact with the ASX, we begged, pleaded and grovelled to be relisted but the ASX just told us to F.K OFF"
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