The Venture exchange Is in a tail spin, it's already lost 10% in just a few weeks. Over the past years it's dropped from 3,000 plus down to 540. Investor sentiment towards explorers has changed, become negative. Several reasons for this, from high executive salaries (producing little results), to over dilution coupled with few companies actually finding a mineable deposit.
So when a company like AMK sits at 12 cents with a high number of shares outstanding gets a LOI with promises of a 43 cent buyout of course investors will get excited. It's one of the few stocks that might beat the downturn the whole index is under.
But for me the most important issue here is, what's going on with explorers as a whole. There are structural problems with the Venture index, companies are struggling, volume is 1/2 of what it used to be and most companies can't raise cash without selling their souls and destroying their shareholder base.
Good luck to AMK, I really hope it works but the main issues still remain that this whole sector is in the doldrums something I've never witnessed before, not even in 2009/2011 and earlier. We need mergers, acquisitions and rollbacks and then a hard cap on share issuance to save this exchange.