funding announcement, page-6

william

ii wouldn't be so quick to dismiss the deal. pax has the option to draw down, or not, at their own discretion. personally, i'm surprised a finance company would offer this deal at a relatively lowly discounted rate.

my initial concern was that the lender may dump their issued shares on the market after receiving them to cash in on their gain. but presumably they would be smart enough to realise they have to avoid the share price crashing or their shares will be in the red (despite discount). seems to me that their interests would be very much aligned with other shareholders.

would be interesting to know if this deal represents a serious vote of confidence in PAX's prospects by the lender or whether it's purely a speculative gamble. the latter would seem very risky for an 18% discount in a highly illiquid micro-cap business. i would have thought they would only make such an offer if they were confident in the medium to longer term prospects of the PAX share price? or am i missing something?

k