Any funds required would be secured via the existing SEDA, do your research
Woof
WRONG.....
PXS have eaten through in excess of £1.5M in 6 months.
Lets not state start up costs etc, as these were contained in the previous results.
They have an urgent need for funding to take them through to end of Summer..
What does that tell us? That they do not foresee the remaining cash as being enough, are we to assume costs are out of control.
OK, why not tap the bank up??? Perhaps they tried and have been refused.
SEDA... Well, PXS management state in the results that this is not an option as it would (In laymans terms) send the SP through the floor...
So, they have to go to market... Existing and new investors... At what kind of discount will they offer this??? 30%, 40%, 50%... How much do they need £1M?? I doubt it as in 6 month historic they need at least 1.5M they will also need a buffer in that so I foresee them going after £3M and I predict at circa 50% discount....
Almost £1M due within the next year to creditors..
Cash burn through the roof.
The "potential" licensee will be well and trully in the drivers seat, and can hammer out the best deal imaginable for themselves...
But judging on PXS past history of failing to deliver on promises, lest we forget that they "Expect" significant revenues.... Thats by no means at all guaranteed, and i would be cacking myself if an RNS comes out stating... "Licenseing talks have ceased"
My opinion is Sell....
At very best, if you have balls of steel then hold, but only a fool would buy now, when the financing arrangements are not known...
Why on earth buy now, with so many unknowns, except for the only known which is that PXS need more cash, but at what price????
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