Avalon share trade recovers after merger talk shock
PERTH (miningweekly.com) – The share price of ASX-listed Avalon Minerals spiked 50% on Friday, regaining ground from a 20% drop in the previous day following news that the company had received approaches from several parties regarding possible merger discussions.
Avalon told shareholders that the approaches were very preliminary and nonspecific in most key respects, including the possible consideration to be offered.
It added, however, that each interested party was seeking the opportunity to undertake a due diligence study on the company.
“The Avalon board intends to carefully consider its response to these approaches but, as the market is aware, the company is currently primarily focused on the reopening of its rights issue pursuant to the orders of the Takeover Panel,” the miner said.
It added that the board would consider the approaches in more detail, along with its responses, once it had initiated the reopening of the rights issue.
Avalon was hoping to raise A$3.7-million under the rights issue.
Avalon was trading at a high of A$0.012 a share on Friday.
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