AVZ (ASX) Risk versus Reward

Originally posted by GiddyYup: ↑

Cheers Sediaws. Its a complex issue because most of the actual events have been obfuscated by the parties involved for their own reasons. Information which has leaked out has done so over such a long period and in such tiny pieces that its hard to put it all together.

Your above comment actually reminds me of another relevant piece of the puzzle. You said above "Dathomir seemed perfectly happy until the final payment was made". Admissions made by AVZ to the ASX suggest that this may not be the case. AVZ appear to have acknowledged receiving notification from Dathomir of their cancellation of the transaction on May 14, 2021, months before the final payment was made. AVZ never mentioned this to the market until questioned by the ASX in April 2023.

Again, AVZ were apparently aware of Dathomir's position and attempted to force settlement rather than seek arbitration. AVZ have stated that it was their legal position that Dathomir's cancellation was invalid so they just ignored it. AVZ obviously isn't going to tell us what specifically Dathomir said to them in that letter but its apparent that the dispute broke out in the first half of 2021, not after payment as shareholders have been led to believe.

Yes it may well still be a case of seller's remorse. On the surface it still looks that way but AVZ management have gone to great lengths to conceal the dispute from shareholders at every step. The question is what happened in early 2021 to cause the dispute and what was in Dathormir's letter to AVZ which AVZ management didn't want to talk about?

As you can see there is a lot more to this than meets the eye. We are all deliberately left in the dark and the failure to disclose key facts until forced to by the ASX almost 2 year later is concerning. AVZ actually took more than 2 months to construct a response to the ASX questions. I suspect shareholders footed the bill for a large number of chargeable hours from legal reps to prepare that response.

Again although I have nothing to gain either way, my sympathies are with AVZ shareholders and I hope this gets resolved in their favor. Its not nice seeing this drag on. I have no doubt management are doing their best to resolve it however lets also just keep in mind that in retrospect there is absolutely no doubt much of this should have been disclosed voluntarily and much, much earlier.

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Agreed. The timeline mentioned was incorrect. Dathomir werent perfectly happy until the final payment was made. It was only after they had 'cancelled the deal' (in their view) that AVZ made final payment. I believe we had declined to renegotiate the sale price, perfectly in line with contract law, after which they moved to unilaterally cancel the deal. It was some time after that that final payment was made, which Dathomir immediately tried to return

i dont feel that Dathomir have a leg to stand, legally speaking, they made their bed and then refused to lie in it. However saying they were happy until final payment was delivered is false. Theyd been trying for some time to alter the deal.

However in saying all this, and yes i know it was not required, but my sense is that a lot of our subsequent trouble originated from this point, and that we may well have been mining by now should we have renegotiated. Hindsight though, and i know a lot of people here don't agree.