AVZ 0.00% 78.0¢ avz minerals limited

Litigation funding is big these days, and from what I can see...

  1. 184 Posts.
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    Litigation funding is big these days, and from what I can see online, funders in these types of cases usually take 20-50% of the pay-out. So, a $20 million investment could potentially bring in $1 billion or more for the funder if it goes well. Considering our strong position to win at ICC and ICSID, and the lucrative potential returns for a litigation funder, why haven’t more well-established firms shown interest in taking this on? On the surface it seems a great way to turn 20 million into possibly a billion or more. What do they know that we don't?

    The announcement on November 17, "AVZ Secures US$20 Million Funding Facility" is misleading. AVZ was far from securing the facility, yet management seemed to want to portray the deal was in-the-bag. Even if holders bothered reading the entire announcement you would have thought the due diligence was just a formality and the funding was ours. Maybe that's what management wanted us to think with the AGM and the show-down with MMGA just 5 days after this announcement.

    Perhaps management anticipated that finalizing the deal would be difficult, which could explain the extended due diligence period and their acceptance of the extremely unfavourable terms.

    In my experience with this company, their concern for shareholders seems limited to when they need funding during capital raises or support at roadshows and AGMs. All other times, they've being a closed-shop.

    Don't get you feathers ruffled, it's just my opinion, you're all entitled to your own,
 
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