"Locke could have walked away March 31 penalty-free from funding AVZ"
Hey Cobber, checkout the Term Sheet terms, there are no penalties for Locke if they walk at any time! t's seriously lopsided. If AVZ or Locke back out, AVZ gets stuck with up to US$200k in costs. And if AVZ bails, there's an additional US$1,000,000 break fee, ouch! Nigel must've had limited options and been in a tight spot to sign off on this (throw in that one-sided exclusivity clause as well). or did timing of this announcement have something to do with it as well?
Quite the strategic play, unveiling this eye-catching yet notably restrictive and one-sided funding announcement just before their clash with MMGA at the last AGM. AVZ must have been eager to accumulate as much positive news as possible before the showdown. mmm
AVZ Price at posting:
78.0¢ Sentiment: None Disclosure: Held
