PGRX quite a drop this week on sudden ouster of inept CEO and last-minute termination of dilutive financing agreement, yet fundamentals appear unchanged with probable stock turnaround and tight pinch quickly forming. Shares were $2.88 before $2B purchase contract signed in October and now-cancelled $100M financing announced in November. New CEO is an experienced dealmaker unlikely to be fleeced by Wall Street bankers.
Unless just dumped (no filing yet), BlackRock caught in surprise downdraft with 5.7M shares (8% of float) which were bought far north of $2.00 last summer. Also, two recent offerings raised $15M last August @$2.50 and $25M last November @$1.75, with proceeds from both applied to purchase of land still owned. Only debt is secured by land with PGRX partner and Holbrook puppet-master as sole noteholder (so odds go to renegotiation over BK).
HUGE money, interlocking relationships among all players, and highly secretive prospecting/mining business model virtually guarantees avoidance of legal actions (with their accompanying delays and public filings) at all costs. And while conventional wisdom typically has placed the greater value on PPRTF, recent events in this highly-choreographed space surely must shift the near-term trade to PGRX.
Consider the immovable object of a global monopoly locked in by the Canada consortium, against the unstoppable force of exploding demand from China, and you can easily recognize the catbird seat that the newly accessible U.S. supply with central control over several entities both public and private (state/federal and Indian) enjoys, and the coordinated fashion in which all were set to benefit even before one of the two public stock participants went on a sudden but very temporary 75% off sale.
