profit discussion, page-6

Graham

>The company will never become profitable with a crippled balance sheet, so a deal needs to be done to fix the balance sheet ASAP

To me this only makes sense if you are talking about a CR to pay back bank debt or to provide capital to invest in the business. In the short term PXUPA debt is essentially free as it places no short term cash flow cash obligations on PPX and should not worry the banks.

I believe PXUPAs can prevent a capital raising and that is their trump card. I listened to the first webinar and that did not specifically address what vote could stop a CR but I assume it is 25% as that appears enough to stop a change in the PXUPA constitution. Would be nice if that could be clarified.

I cannot see a straight equity swap working in the short term because PIGS and Coastal would want one which would give them effective control (unless buyers friendly to the board have been active. PIGS only need 25% to block.

I have holdings in both and do not want my overall interest diluted so would be prepared to tip funds in if the deal was OK. I do not think the current SP for either PPX or PXUPA represents fair value but am not buying more because of the risk level I am already exposed to. I would want a lot more to be enticed to sell either of my holdings.