"If indeed PXUPA holders can block capital raising and company is desperate to raise capital, then the answer seems simple: PXUPA holders get $100 worth of shares in PPX and the PPX holders take the "haircut"."
Watford, in the PXUPA case their is no way to block a cr. So does that mean in your opinion PXUPA are worth less than $100?
In reality, a cap raising is unattractive with PXUPA un-addressed. But it is permitted from the prospectus I read. But it would require a discount imo to make it more attractive.
Also why would PXUPA block a cr? A cr will increase equity which adds security for PXUPA holders particularly in windup scenario. Their is conjecture between Face value, book value, and Responsible Entity valuation. All different values. But one thing is certain, PXUPA equity is marginal at best. A cash injection would benefit them as much if not more than it benefits PPX.
SRS Price at posting:
6.5¢ Sentiment: Hold Disclosure: Held
