Update, page-4

Thanks for the info.

I like the story of PRR, but what concerned me is 1.18 billion cheap shares that can be converted by Ridgeback ranging from 1.73c, 2c and 2.4c at any time will hold back the market.

I feel the share price might drift a little lower toward 3c level if no significant news to move the market by end of 2015... Good luck thought !


The Ridgeback deal included an A$1.25m placement at A$0.0173 per share announced in May and A$13.75m of 10-year notes convertible at A$0.02. The notes will accrue simple interest at 3% per annum payable on maturity or repayment. Interest will not be payable if the notes are converted prior to repayment or maturity in 2025.

Ridgeback was also issued 380m warrants with an average exercise price of A$0.024 and durations of 5 and 10 years. The warrants can be exercised either by paying cash or by so-called cashless exercise, where a proportion of the new shares sufficient to cover the exercise cost are deemed to have been sold back to the company at the previous day’s closing share price.

Ridgeback currently holds 112.3m Prima shares, representing 5.7% of the shares on issue. Exhibit
1 shows that if it exercises all of its warrants with cash payments and converts all 13.75m convertible notes then its holding would increase to 1,180m Prima shares, representing 39% of issued stock if no other shares are issued, or 36% if the other 229m in-the-money options and performance rights not held by Ridgeback are also exercised.