Prospect Global Resources Inc fka PGRX

[DFYSW]

It remains a big positive that there have been no sales of stock by anyone in the know since the drop. In fact, it appears that large holders still want to maintain or even increase their equity positions. Buffalo (Avery et al) is taking payment in shares and keeping active its warrant to purchase 5 percent of the company, while everyone else seems to think it a good deal to provide at least the immediate additional funding needed at just a fraction of the price paid by the initial investors and participants in the two public raises, not to mention the price to which Apollo was committed. The timing is off, though, with the first $5M funding to have closed no later than next Wednesday, so obviously this remains a risky work in progress.

Still nice to see a focus on equity. PGRX likely has to stay in the public market for continued access to the capital needed for development of the mine (or a buyout) in time to meet the off-take obligations to the Chinese, so this could be a rare opportunity for the honest little guy to ride along with the big boys.