I still believe a deal is coming. However there’s always a chance it falls through (maybe it has already), delays occur or something goes wrong.
It’s important to manage risk and I think that’s what this ratification is about. In the event that something does fall through it would be much better for PAR if they had access to funds to keep the lights on. Even if it does create dilution and upset shareholders. If they had to seek approval for the shares with everyone knowing they have no money left, the SP would tank so low and the dilution would be much worse than if they prepared for it earlier.
I think everyone here can agree that if PAR did find themselves in a situation with a deal falling through, no money left and having to seek approval for more money to keep the lights on… everyone would be even MORE upset they had no contingency plan.
With their track record on deals and CRs however.. I wouldn’t be buying any shares at the moment. For now I’m holding and hoping they do get a deal in the next few months so P3 can continue without delays.
PAR Price at posting:
30.5¢ Sentiment: Hold Disclosure: Held
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