Hi Fishywoo. Depending on how the resolution is structured, I'm...

Hi Fishywoo.

Depending on how the resolution is structured, I'm not sure that you'll be able to vote NO for the warrants, as you suggest. Based on the deal announcement (below), the 2nd part of the issue to Ridgeback, to be approved at the EGM, requires simultaneous approval of the warrants and the $13.75 m cash injection.

Rejecting the warrants will entail forgoing the much needed cash. ​

"Subject to obtaining Prima shareholders’ approval, a lump sum cash investment of approximately A$13.75m for consideration of an issue of convertible notes which will be convertible into Prima ordinary shares at 2.00 cents per share ("Notes"). In addition, as part of the convertible note issue the Company will issue two tranches of warrants to Ridgeback."

I'd suggest waiting to see what the final terms of the resolutions are in the notice of meeting, before making any final decision.

The simple fact is, PRR needs cash to continue developing its products. So do multitudes of bio-tech hopefuls, and there's only so much cash available out there. The deal with Ridgeback offers certainty, whereas the alternatives are completely unknown. Personally I'd rather have 50% of something than 100% of nothing.

I keep harking back to the Ventracor debacle, where their board rejected a funding deal because they felt it was too dilutive. No better financing was located and VCR finished up bankrupt.

Ultimately, every shareholder is going to have to weigh up the risk/reward equation for themselves and vote accordingly.