AVARONE METALS INC. (“AVM”) bails from the TSX.V in favour of the Canadian Stock Exchange otherwise referred to as the CSE. Shareholders receive a nine-month whirl.
Marc Levy’s Avarone Metals has opted to fold up its bags and move across town to the Canadian Stock Exchange (CSE); probably to save some dough. In May 2015 the company rolled its share structure back 2:1 and reduced its issued and outstanding shares total from 58,989,000 down to 29,495,000. Then in June Levy’s Avarone completed crazily low priced private placement of 36.75 new shares at $0.01 and increased the company’s issued and outstanding shares from the reduced level of 29,495,000 right up to 66,244.995. Avarone picked up $367,500 in the process. Lucky Marc, he purchased 2.5 million of those $0.01 shares. Next, Levy took Avarone into an Option Agreement to acquire 100% interest in a lead-zinc project in Saskatchewan named the Borys Lake Project. Not too sure about a lead-zinc project in these markets – but who knows? Oh well, interesting concept. By the way, the chart on this baby – resembles a toboggan ride to hell. Marc now needs to get the nose the ride pointed upwards. Avarone has now decided to leave the TSX.V behind and jump over to the CSE. We are guessing to save dough. Mark’s a smart guy and he will figure out something here to rescue his shareholders. So what was lost and what was gained by the shareholders? The shareholders at May 2015 saw their assets halved but no double in share price after the 2:1 rollback. Isn’t the BS we all here about rollbacks is that after the rollback the share price will increase by an equal amount; in Avarone’s case double. Perhaps these days that is like asking for a miracle. Word to the wise – the only person who should be believing that crap about rollbacks is the person who coined the phrase.