Respectfully, I don't agree with the general take on this...

Respectfully, I don't agree with the general take on this thread.

They agreed to take PDN shares because both companies are short of cash and both companies believe their current share prices don't represent fair long term value for their assets. By getting PDN shares they are swapping an illiquid undervalued uranium asset for a liquid uranium asset. The fact that the price has fallen further wouldn't make them happy but they would be thinking about the fair value longer term of those shares and would not sell them unless they were absolutely desperate.

Like AZZ getting US BBEP shares which have since dropped to 20% of their value, the market being oil instead of Uranium.

My opinion is those shares are going nowhere even after the escrow period is elapsed unless the company is down to its last few beans and the bank won't lend them any money using the shares as collateral OR the market turns and they think the PDN share price represents fair value.

There are a few reasons PDN might be getting hammered, but I don't this is the issue at all.

IMO, of course.

Cheers
Pb