AvenEx Energy Corp AVNDF

Time to change your vote from yes to NO!

[pennydredful]

With   Pace   trying  at  2.60   this  is indicative  of a price  for  Spyglass   of   2.00    ie  2.60  divided by  1.3  while   AVF   is  holding  up  at   2.30    .  With   the  one  to  one  exchange  ratio    AVF   for  Spyglass   you  are  looking   at   a  loss  of  .30  per  share  or   13.00%+  .

[bigbank91]

just so your aware. the market is priced in at a failed merger and seperate companies. in my view, 1 share of spy is priced in at $3.00, then dividend announcement will get premium. and growth from there from nat gas hedges going up and 90 million capx program. as it was priced in at $2.60 before the recent natgas gains. which companys like pgf have seen a nice boost. pce would be smart to keep

[pwalk140]

Exactly! The current market price is NOT priced for a merger. Just look at CHX, it's just slightly lower to where it was pre merger. The market price would not be this low if it was priced in for the merger to go ahead. These prices are the new "norms" if the deal does not proceed.

[Kingscourt]

That may be true for CHX, but PCE and AVF are well below their pre-merger valuations. If these valuations are the new norm, you can be sure the initial SGL valuation will be adjusted accordingly. Management still wants the merger to go through, so it is very unlikely they will release a revised valuation that is anything lower than its initial anticipated valuation of $3.32. Pace's recent

[pwalk140]

True, however the pre-merger valuations were also pre ER sale and pre PCE results, the market has now factored these in to the current SP as being stand alone entities.

[Kingscourt]

That being said, the merger was dependent on the sale of ER and they still valued AVF at $3.32 after the sale. It was unfortunate to lose a growing business that had about $20m in cash flow, but if the merger does fail and management can make a wise move or two with the new capital to reproduce that lost cash flow, I don't see why AVF shouldn't be valued at or above $3.32 with gas and oil