##Not necessarily if existing shareholders are given the...

##Not necessarily if existing shareholders are given the opportunity to contribute new capital. That is why I have been suggesting a rights issue as part of the deal. There is no reason the rights issue could not immediately precede a share swap with PXUPAs provided PXUPA holders were fully aware of the terms and agreeable##

Austted. No one in their right mind would support a capital raising with the company in the financial position it is, and the SPS effectively owning all the equity. All that would achieve would be a higher value for SPS and realistically no extra equity for the fully paids. Overly simple explanation I know, however not far off the mark.

That is a key reason why, if the board deems they MUST raise capital, it would almost certainly be PRECEEDED by a deal with the SPS holders.

Mind you, I imagine SPS would just love PPX to raise a lot of money.