They are getting a very good deal out of this especially if PYM has any success at all with some of these planned drills. The next drills are supposed to be low yielding but also low risk so hopefully they are able to provide PYM with a much needed steady stream of revenue to finance more risky drills later on... From a historical perspective its not looking fantastic ...
Its quite risky for underwriters but the upside is huge mainly due to the options.
I am interested to see if there will be any SP action once PYM announce the cap raising, as well as confirm their business strategy and timeframes for the next drills. Hopefully they have already got the wheels in motion with the guaranteed 4 mln...
PYM Price at posting:
1.1¢ Sentiment: None Disclosure: Held
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