re: in the doldrums? The placement was only 8% below current...

re: in the doldrums? The placement was only 8% below current valuation. One area of concern that may directly impact on the stock is how many of the takers were only interested in an arbitrage i.e take up the stock at $6.50 to sell it immediately once it's been issued.

Given the placement was fully subscribed by institutions this seems unlikely. I tried to get some shares through Haywood in Canada just 12 hrs after the placement announcement and was told flatly 'no', there was nothing on offer, it was already gone. As I mentioned before the placement was closed before it had opened.

I would think the institutions are more interested in a long term scenario. As such the newly issued shares are unlikely hit the market in any volume, which means there will be no sell down.

Basically I expect AVM to resume it's previously upward course shortly. The cash they have raise is going to increase their productivity and decrease production costs significantly. The benefits will outweight dilution IMHO.