it is always darkest before the dawn, page-8

Bargain

It will be very interesting to see what kind of deal PAX will achieve with VCs for project equity. Let's say, as example, $28 mill is required and they put in $20 mill, with PAX to raise $8 mill from CRs.

That's a 20:8 or 71:29 split. Do you think they'll take 71% of the dividends, or 95% as the cost of their entry? If the latter it's a pretty expensive deal for PAX shareholders.

The former will only be achieved if PAX is more able to raise cash from CRs, hence the sp will need to rise to make this possible.

The VCs could always buy PAX, get in new managers, tidy up the portfolio, and on-sell it to a major. At least they'd have greater control over their investment. It will depend on what they think of current management I suppose.

This is all speculation of course. What do I know about high finance.