re: Ann: Investment Transaction For PrIME Bio... Have re read...

re: Ann: Investment Transaction For PrIME Bio... Have re read and have a couple of other observations.

1. PE generally negotiate in preference rights. If we have a divi, then i don't begrudge a 10% coupon. Naturally, it is not a divi unless they make a profit.
2. Preference on a winding up is also not a major concern unless it is a solvent winding up. The factory will be the biggest asset so if that goes, it's game over. Standard PE stuff.
3. PE will look for a listing of Prime, so i would not be too worried about aligning interests, NSP's interest should rise with the Prime tide. I would want to know if there are any put or call options in the shareholders agreement which we have not been told about.
4. Relinquishing voting rights is certainly a poor result depending on what they have retained. This is where they may have been bullied. This is all dependent on how much NSP is silent. Is it on a winding up? A listing? Expansion of the business?
5. So a bit of a mixed bag, but when you're dealing with PE and not strategics, then you expect to come off somewhat second best as they cover themselves.

Think i will hold and see how this plays out as think there will be significant value to come down the track despite the favorable terms offered to the consortium.