It's in the company & shareholders best interests to aim for conversion of the options by expiry - minimal dilution when put against the placement but capital raised would also far exceed.
$7m based on 100% conversion & this would set in concrete no possibility of any further capital sought before the company moves to cash sustainability by next EOFY meaning 12 months from tommorrow (although i expect it may come much earlier).
Management are well aware of this & with the multiple developments in the pipeline for near term release that have the potential to significantly add to increased company values i think there is a good chance (although high level risk) that it will come forward.
Market Cap at present is about $28M which imo is well below fair value when you break down the current position - but market is often inept at attributing these things without a bit of a shake, depending on how the next development unfolds it may not only provide that value to the company but also awaken the postion that is currently looked over.
For PYCO to achieve 100% conversion IMO it needs to be steadily holding at 20c or above heading into the conversion, which really is not such a big task provided the right developments are sealed leading into it. 200% increase in current share price would put the options @ 21c (a comfortable area for full conversion) & the company will still maintain a market cap of $84M which is quite reasonable IMO.
It all comes down to whats in the bag over the next 4-6 weeks
PYC Price at posting:
6.6¢ Sentiment: None Disclosure: Held
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