PNV - Banter and General Comments, page-4859

Not all capital raisings are a bad for investors. The last capital raising back in 2017 for example was fantastic for investors and instos who participated.

The biggest concern about capital raisings, is when the company is forced to do it out of desperation (e.g. AVH). This is not the case with PNV, and their cash burn to date has been out of choice to invest to grow the business faster.

The biggest factor that will protect shareholders in the event of a capital raising in this case, is self interest. David Williams, the Chairman. He is a major shareholder and has spent millions of dollars of his own hard earned money to buy his shares. Paul Brennan, MD, is also a top 20 shareholder. Their interests are well aligned with all other shareholders.

Given the millions of shares they hold, there is no way they would contemplate unnecessary giveaway like CSL did at the start of the pandemic. What CSL did to its shareholders was simply disgusting. They did a massive dilutionary capital raise as a placement to an institution with a huge discount (the insto was well in the money from day 1), and no lock-up restrictions - yes, they could and I think they practically did sell at least some of it for a stag profit shortly after.

CSL shareholders were rightly appalled and angry.

What happened at CSL is what happens when you have a board and management team that are managing the company like they were dealing with someone else's money. "Hey, we think the company needs cash, let's look for a quick and easy way to do it, who cares about our current shareholders, let's just make it a placement with someone we like. It doesn't matter if we're basically giving away free money to someone else, we get paid the same big salary anyway."

That's not going to be the case here. If the Chairman and MD do anything remotely close to that, they would be targeting their own wealth.

I am very confident, that they will only raise capital if it will help accelerate the value of their own shares in PNV, and if they do, they will do it on terms that will not unnecessarily dilute the value of their current shares.

Between the two of them alone, they have around $50 million dollars worth of shares in the company and I'm sure they would rather see that go up, rather than being given away unnecessarily.