AvenEx Energy Corp AVNDF

share buyback a possibility

[skygarden]

If the merger does not go through would it be a good idea for Avenex to do a share buyback to reduce the number of outstanding shares?  On page J-4 of the information package it states that there were 54,304,762 Avenex shares issued and outstanding (at $0.035 distribution per month or $0.42 per year that would work out to $22,808,000 paid in distributions annually).  In appendex 'M' footnote '3d' it states that Avenex reported cash proceeds of $99.3 million from the sale of Elbow River and other assets.  My thinking is if they reduce the number of shares that will save them future distributions and provide them with some capital to reinvest (or an additional 'special dividend' down the road).  For example for every 4 million shares removed that would save them 1.68 million  per year (4,000,000 x $0.42).  Any thoughts on this as it appears that the merger may not happen and it also seems that Avenex will fare far better than Charger or Pace if it does not.