They are allowed to raise money because it would actually...

They are allowed to raise money because it would actually benefit PXUPA to have a greater NTA buffer. But ofcourse reality is that it will be difficult.

But lets say they get about 25%. That is about $80mil of equity shifted from PXUPA to PPX at a cost of about $12mil. A nett gain of $68mil. Not insignificant when market cap hovers around $30mil. Some re-rate would be forthcoming I'd imagine.

In a perfect world, PPX would 3bag to around 18c. But that wont happen. But hypothetically if it did, they $14 offer is around $42 which is actually appealing.

In reality we will trade at a discount. But 10c would be realistic. Real opportunity could present to convert, sell, and rebuy cheaper. But really, the minimum accpetance would want to be around 20% for any meaningful gain. If Coastal is onside then this is certain.

One thing with Costal is they have nearly reached their 20% cap. So their isn't much more thay can do. This might get them back in the game somehow.

If they can get the sp back to around 10c then they could do a discount cr and have some success even with PXUPA hanging over their heads.

Also if PPX are 10c, their is more confidence in general and it should even rub off on PXUPA.

Or, since the converted PXUPA aren't being cancelled, they could re-market them. Sell them for $14 cash if they have a buyer.

They are acting confident imo. Which is why I smell a rat. And Coastal should be kicking and screaming by now.