If AVL holders were worried about getting diluted by TMT holders...

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Troydt

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26/11/23

12:00

Post #: 71110800
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Originally posted by dbd25: ↑

I totally agree, AVL have little in the way of valuable assets. A "cottege industry" VRFB sidearm, an ore-body with a big question mark hanging over it as to whether it can be economically mined at all, a sexy company name that appeals to shareholders ? And they want TMT holders to accept shares in this developer in exchange for all TMT's assets ? If it was a takeover by BHP or IGO offering their shares, it would be a different story here. But its AVL, a small Vanadium developer with no clear path to actually producing any Vanadium in the near or medium term. Holders might ask the question in any case - what are potential disadvantages of accepting script in any takeover bid ? I saw this play out with the cyber security company TNT over the past couple of years. I made some good profits with TNT after selling out with a profit of a few hundred %. TNT itself acquired around 10 cyber companies with 50% cash/50% script terms, in several cases when the SP was 20c-30c. Sunsequently when positive cash flow failed to materialse, the SP fell back to ~6c, and TNT eventually was sold to Thales for a full cash buyout at 13c/share. The key point is that the former owners of the acquired cyber companies effectively lost $millions on the final deal as they were paid in TNT shares at ~20-30c, only to be forced to sell them at 13c. They were probably pleased they insisted on 50% cash upfront, had it been all script they would have smashed. If AVL are not in a position to make a cash offer for TMT, neither side should be talking about a takeover or merger. If AVL want the the assets of TMT, they should just pay a fair price upfront.

All IMHO, DYOR

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If AVL holders were worried about getting diluted by TMT holders then they should have been sending letters to the previous management regarding the management of the share register……The vanadium experience on the AVL board delivered a BFS which says it all!

AVL are now pretending they have a whole new management team which are going to change the mineable economic outcome.

They can’t do it with TMTs orebodies and mining strategy

TMT Price at posting: 23.5¢ Sentiment: Buy Disclosure: Held
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If AVL holders were worried about getting diluted by TMT holders...

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