AvenEx Energy Corp AVNDF

This is the way I see it

[jacek99]

Okay, we got hosed.

That being said, what can we do now?  Our biggest/best asset is gone, so if we block this deal and vote against this merger, what will we be left with as a lone entity?  We would get penalties for not approving the deal and I don't know how the $80 million on proceeds would settle, since it should be going into the new entity.

I'm not selling now and will likely vote to approve this merger.

Why, because if the deal benefits the two others far more than us, I can hope that the $80 million will reduce debts and make the new entity more appealing, with $0.30/share dividend.  If the company appears stable and strong, maybe the dividend will be in the 5%-10% range, which could have the company trading at $3.60-$7.20 share.

Does any of what I'm saying make sense?  Please feel free to poke holes in my logic and theory but I feel that at this point I have no choice but to approve and hope to re-coup my capital @ $3.27/share.

 

jacek99

[pone]

jacek99, you are letting them walk on you and then you are trying to tell us you want to send them a vote of approval? 1) Reject the merger. 2) Pay shareholders the $80M cash! 3) THEN find a buyer for the remaining assets of the company. And what they SHOULD have done: 1) Find a buyer for the oil and gas 2) KEEP Elbow River 3) MILK the oil by rail phenomena. 4) SELL Elbow River for 8 x EBITDA as a

[hawk35]

I think your logic is very sound.  Voting no would hurt the shareholders more because of the loss of our prize property and the associated penalty. However management has to explain and sell this deal if they are going to have any chance of getting a yes vote.  The silence from AVF management shows a lack of respect for their own shareholders.  But lets give them a bit more time to

[jacek99]

I agree with everything you say. Believe me, I'm fuming.  I sold my HSE for this, hoping for a steady flow of cash.  This was days ago that I got in @ $3.27.  If I had waited a few more days, I would not have purchased this. That being said, can we stop the sale of Elbow River?  If not, what happens to us as a lone entity without Elbow River?  Will we make it? Can

[pone]

hawk35, so you don't think that Avenex's oil and gas assets have any value once Elbow River is sold?     How many bopd did we have on current reserves?   Let's back out the $80M and value the remaining production.   That's a worthwhile exercise.

[pone]

Jacek99, if we sell Elbow River and do NOT sell Avenex, then Avenex has $80M to help buffer losses from oil and gas.    Give $40M to shareholders immediately.  Then sell off the remaining assets   Add that to the other $40M and shut the doors.   What this merger really says is that Avenex's oil and gas assets had little value to anyone.   What those companies