I understand it is a huge dilution and devalues any potential future price by half. Panax needs money to stay solvent and had to get it from somewhere. I also am p155ed off that investors got 200M shares for the same price I paid for less than 20M.
This deal at least allows the company to cotinue for 6 or more months by which time we should have PPA's
I also see an opportunity to reduce my buy price by selling at .002 and .003 and buying back at .0015 as I expect an even lower acceptance than the 20% last time there should be plenty of surplus shares to buy more than my allotment.
I did some research on Pacific Energy they are a WA energy company with good assets and moving into renewables and I think this is a big play for them.
My guess that after the issue they will hold 30% - 40% of the company and I don't expect them to sell into the market like Patersons and DV.
I believe they see Panax's potential and want to be a major holder and I fully expect that after we get signed PPA's they could come in and fund the projects or even launch a takeover, with PPA's we could be 1c or above and at least we would get a reasonable amount back.
PAX Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
