Avecho Biotechnology Ord Shs V.AVE

RE:RE:RE:Terms

[zadman]

Getting long Aveda here also gives you free leverage to deseke stock in the US which if you look at its chart, was MATERIALLY higher a couple months ago.  If that stock rallies our 90 cent floor rises thanks to the exchange ratio.  If it tanks, you elect for the 90 cent CAD cash.  I think Aveda is a good buy to about a dollar and then above that - only if you believe in the companies ability to generate EBITDA over 18MM (which for the record I do).  


One thing of note some may not be aware of - go to deseke investor page on their website.  There’s a link to the conference call held this morning to discuss the acquisition.  No aveda personel, only deseke.  Did learn that for any 3rd party trucking expenses that Aveda was subbing out (long haul rig moves etc), they will get a 7% of gross rev credit towards their EBITDA earn out calculation.  Don’t know how material this will be but I view it as another positive.  That, them hiring crane operators and the rig count and oil price trend = YUGE opportunity for margin expansion.

zad