Many AVZ shareholders appear to have reposted inaccurate and misleading statements suggesting that "AVZ Secures US$ 20 Million Funding Facility".
For clarity, AVZ has
NOT SECURED A US $20 MILLION LITIGATION FACILITY.Here are the TWO KEY FACTS (taken straight from the term sheet, which is pasted below):
- The funding facility is A PROPOSED FUNDING FACILITY
- It is subject to diligence: LOCKE IS TO UNDERTAKE ITS DUE DILIGENCE
Here are some observations:
- After reading media and recent information released by MMGA, it seems UNLIKELY THAT LOCKE CAPITAL WILL CLEAR DILIGENCE DUE TO MULTIPLE SUBSTANTIAL RED FLAGS
- WORST STILL, if the AVZ BoD were KNOWINGLY AWARE OF INFORMATION, THAT WOULD LIKELY LEAD LOCKE CAPITAL TO TERMINATE AND TRIGGER THE BREAK FEE yet still signed a binding term sheet EXPOSING SHAREHOLDERS TO A PENALTY FEE IN EXCESS OF AUD $250K
- To protect shareholders, the ASX should immediately seek clarification from AVZ on the status of the term sheet and that they are not in possession of any information that would lead to Locke terminating the term sheet.
Expected view of a troll non holders…hahahaha
