the rub on pno

MLPH closed at 54 cents on OTCBB on volume of 727,500 with sellers asking 56 cents (high for the day). Australian dollar equivalent of volume traded is over half a million dollars.

There are possible reasons why the Australian PNO has not risen to reflect the value of its MLPH "deal". (1) PNO must deliver USGAAP accounts and share transfer of 100% of shares in its unlisted public subsidairy MLP to MLPH in a closing to take place in PNO's head office in Australia. (2) MLPH has to prepare documentation, call a shareholders meeting and vote to approve the deal to buy MLP and issue 88,000,000 shares to PNO making MLPH a subsidairy company of PNO.

PNO already has "defacto" control of MLPH and it is assumed that the deal will be approved. The U.S. market has a very bullish view of this relationship (backed up by hard dollars of trading in the stock). IMHO as we get news of the settlement in Australia, filing of shareholder voting memoranda with the SEC, date of meeting and results of voting PNO stock will gradually rise and probably "pop" on the day they take legal control of MLPH. This process may run two to four weeks to completion, although my impression was that PNO would move faster to completion (may also explain why PNO stock is lagging well behind its U.S. valuation).