Ann: Avexa's Proposed Merger with Progen Term, page-11

re: Ann: Avexa's Proposed Merger with Pro... My post of a few months back re what said below now comes into play..."AVX is trading cum significant capital raising after this deal falls over and the discount to to current AVX SP will have to be material to get anyting away. THIS IS THE MAJOR RISK TO AVX HOLDERS IMO."

The pending dilution to AVX shareholders is going to be massive, much more so than any PGL merger would've delivered.

In any capital raising AVX will have to offer existing shareholders the opportunity to participate and hence if you hold AVX best now to sell most of your holding as any rights issue ratio will be far greater than the 2:1 or 3:1 range.

The only other option is for the board of AVX to sell the company whole but Shire hold the blocking stake with regard to compulsory acquisition here.

Any buyer will have to negotiate directly with Shire who may ask for concessions that make any deal unpalatble.

Shire may just pick this asset back up on the very cheap after it's been largely funded by OZ retail and insto punters who've got it terribly wrong.

Very savvy operators those Shire boys!