options rights issue

AVD just announced a options rights issue for existing shareholders and a further options placement to sophisticated investors
oppies 3 for 4 with a strike at 15c expiry Oct 2010
issue price 1c

with Co net asset backing sitting at around 17c i suspect that there will not be many left unsubscribed for the underwriters
rights issue plus placement should raise an immediate $1m for the Co to further reduce debt and suplement working capital (and a potential $15m on conversion of oppies)

Busy qtr coming up with multiple targets to be drilled and ongoing workover program should see further growth and revenue building nicely.
Should see Lone camp sale finalised soon which will prove the model with a profitable recycling of the asset providing a substantial profit and welcome injection of funds to leverage off.

Oppie issue should see the sp push higher

Lassatter