Good thread all.
Agree at the moment PXUPA is effectively an interest free loan to PPX and the best result for both PPX and PXUPA is for a PPX recovery.
Current issues are:
- Unless there is a turn around, any PXUPA conversion to PPX is meaningless / worthless.
- PXUPA holders have only $11 to lose at current traded price.
- The "responsible entity" (or whatever they are called) valued PXUPA at $23 ie conversion 230 to 1.
- If PPX liquidated /sold then (by memory) PXUPA holders may get $40 to $100 (say $60+) based on asset values ex the Waterstone report.
- PPX doesn't have cash to buy out PXUPAs even at a bargain rate of say $15 + partial conversion of say 130 to 1 (ie ~ $23 total)
- IMHO as any conversion would see PXUPA holders lose their priority over PPX holders it would require an inducement...say $60+ (cash/conversion mix) to obtain PXUPA holder approval.
- A conversion at 230 to 1 ie ~ $23 would see the number of PPX holders double and potentially see changes on the board. Even more marked at 600 to 1 ie ~ $60 per PXUPA. Is the board open to this?
In summary
- I think everyone needs to sit tight on this one and wait (hope) for the turn around.
-If however PPX wants to take out PXUPA to expedite its recovery, then would expect ~$60 in cash/conversion may be required.
Currently PXUPA only
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