I Like This Deal... To start, I bought at ~$1.55, so I haven't made a cent. But... this deal seems pretty good for us shareholders. Let's be honest, in my opinion, management has done a real bad job. Even before the Mali thing, they had trouble meeting production targets. Stock was already declining. Then you've got the coup, which not only drops share price, but also makes the whole company WAY more risky to be in. Now it sounds like we were cash strapped on top of everything.
This deal happens, and we wind up owning ~39.8% of a better run company with safer assets. The deal almost sounds more like a merger than a buyout. We were just paid a PREMIUM to de-risk the sh|t out of AVR, and got a better management team. I would've liked to see more of a premium too, but I believe that until the situation in Mali clears up, AVR was almost worthless. Obviously so do EDV shareholders... I think we got a pretty good deal for what we had.
I've played the venture for a while and seen some shady deals. This isn't one in my opinion. Given the risks in Mali, I'm shocked anyone would touch AVR.