pigs, page-12

Surely PPX holders need to be very fully appraised and involved in the PXUPA terms and conditions rather than throwing javelins at GrahamCC.

As a starter (forgetting at the moment the priority and security aspects of PXUPA) it is clear the PXUPA are a put into the PPX equity as all roads lead there and the company can effect this as an alternative in all cases.

So the value of the equity component and the part PXUPA and PPX respectively play is paramount.

A quick look at the PXUPA conversion conditions in their issue conditions other than for Change of Control appears to put each PXUPA into some 1260 PPX viz. each with a Redemption Amount of about $103.50 (and rising as time goes on while no dividend is made) and a denominator of 97.5% of the 20 business day VWAP which (using the current PPX price of 8.3 cps in the absence of VWAP readily to hand) means 103.50/8.0925 = 1278.96.

So the PXUPA become some 3,645M PPX or over 85% of the equity. With a current PPX price of 8.3 cps valued at some $50.5M this would put the equity component of the company at over $336M. Oh yeah?!

Ergo, the PPX can hardly be justified at anything like 8.3 cpc without ascribing a massive premium for future hopes and desire and for voting control of the company. A more reasonable view is that PPX are grossly over valued on market - something that the half year figures may well show.