new ASX CODE, page-47

Joel_gee,
The alternative is PRL got bent over by a farmin, retaining only a small share in their assets. Once these microcaps get into a death spiral of no cash and a tiny market cap they are essentially prey. Look at companies like NSE and NWE, where there have been small cap raisings just to cover administration. Death by a thousand cuts. After a year, PRL more than likely would have gone bankrupt.
Also, many of these reverse takeovers are just the most cost effective way for a company like Warrego getting listed on the ASX. Normally existing shareholders get wiped out completely.
At least this way shareholders get another go at making back some money and some liquidity into which they can sell their shares.