Avante Corp V.XX

RE:RE:RE:RE:RE:RE:XX and SSC halted

[deleuze68]

hevin wrote: Where was it disclosed that Fairfax disposed at a $1.35? To me it doesn't make sense as they would have taken a 20-cent loss. Do you have a link to that? However I agree with everything you said after that LOL

deleuze68 wrote: The Fax Capital disposal I believe happened before the original buyout announcement as they received $1.35/share. I'm thinking it was done privately.

The Logixx business has deteriorated significantly over the last 3 years. Margins sinking, growth plateauing, and just too much competition. Once you take out the higher margin boost it received due to Covid security work it is barely profitable. This is the reason the share price had been in a steady decline before the buyout announcement. They have now fixed this problem and will be sitting with 55 cents/share net cash. There is no logical reason the share price should be trading below where it was before the busted buyout.

Not Fairfax but Fax Capital. Fax Capital had purchased 2 million shares last year at $1.75 but recently disposed of them at $1.35. From the most recent MD&A;

The Company’s Investment Committee approved the investment in Avante in July 2021. At December 31, 2021, the Company owned 2,000,000 common shares of Avante, representing a 9.4% equity ownership interest in the company. The fair value of the Company’s investment in Avante at December 31, 2021 was $3.0 million, resulting in an unrealized loss of $0.5 million.

Subsequent to December 31, 2021, the Company sold its entire position of Avante common shares for proceeds of $2.7 million.