Certainly, their initial investments after the SP collapse could be seen by their shareholders as an astute each way bet. Looking quickly at the numbers from the Form 604's (Notice of change of interests of substantial holder), PVL have bought a little over 10% of the company for $950k with an average of around 0.008. Even if they don't succeed with their Plan A, they have already made a decent return on their investment of roughly 20% (at today's SP) and if it returns to anywhere near cash backing they'll get near to 100% in a very short period of time which is a nice fall back, so right now their clients should be happy whichever way this turns out for them.
Plan A - we gain control of $18m(-ish) cash for $1m investment Plan B - we don't gain control of the $18m(-ish), but we still see our $1m investment make a couple of bags.
Win-Win
That being said, like any major shareholder, they face the issue of liquidity and exiting such a large holding without affecting the SP is hard. Hopefully they are still pragmatic and unemotional in their desire to make money, and if this vote doesn't turn out the way they hope, they will continue to hold until the current board returns some value. I feel confident that with the right partnering with the right new drug at the right time in it's development, that we can see ourselves back into at least the 3-4c range in the not too distant future. Hopefully PVL can see their Plan B as that way to and hold on.
PER Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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