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Bullboard - Stock Discussion Forum AvenEx Energy Corp AVNDF

GREY:AVNDF - Post Discussion

AvenEx Energy Corp > I really have to ask this...
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Post by trismigistus on Mar 22, 2013 6:52am

I really have to ask this...

Given it is a documented fact that AvenEx relied on Elbow River to fund 70% of the dividend when it was .042 monthly and it has been sold how is possible that at some point they will not drastically reduce the current dividend; if not suspend it indefinitely?

70% of .042 = .0294 which indicates to me that in a best case scenario using simple math we would have to assume that they will have to further reduce the current .035 dividend down to .0056 in order to maintain financial equilibrium.

Frankly it would be a laughable insult to offer a half cent dividend to shareholders. So laughable in fact I personally would have to assume they will end it altogether citing capital expenditure priorities to recover from the impact of loss of revenues from ER .

They will of course have the perfect excuse should the merger fail to be approved. The board of directors will insist their plans for the future were sabotaged by the "No Vote" and blame the shareholders. 

After all the board of directors figured out a way to guarantee a long term .025 per month dividend with this merger and it will have been the shareholders who rejected the plan.

I keep hearing people in this forum who are voting "NO" argue that there has not as yet been any statements made to indicate the current dividend will end should the merger fail, yet not one of them has made an attempt to explain how the dividend could possibly continue should the merger not go through as planned.

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