The strategy reviews by the board are in progress. The details have not been put on the table for shareholders to assess.
Why the PGS group is rushing to attempt to remove the current board instead of waiting until the strategy review and the M&A transaction details are come out ?
In the environment of the current financial crisis, the financial part is the most important issue but the PGS's proposal does not contain any financial details. The PGS's proposal to unlock the value of Progren's assets, which is good. But at what price ? burning A$10 million more in cash with no certain result ?
Also, in the agreement with the Taiwanese company, it looks like that Progren will carry all the financial risk by outlaying A$6.6 millions including the loan to the Taiwanese company (could burn much more cash as it goes). So the Taiwanese company will share the rewards if success. But Progren has to carry all the significant financial risks alone.
The motivations of the PGS are in questions. Anyone in this forum knows about PGS group or members of PGS group, please clarify the above issues. Thanks so much.
PGL Price at posting:
75.5¢ Sentiment: Hold Disclosure: Held
