I question whether Drexler's ego would let him dump his position at .85. He has demonstrated a marked tendency to run this company as his private fiefdom, with little to no regard for supporting or increasing shareholder value. Instead, I foresee one of three outcomes:
1) PPS increases to the point where a buyer swoops in at something above the $50MM level that gets Drexler his transaction bonus (this is only a bit over $1.55/share if Drexler converts);
2) PPS continues do drop, Drexler continues to try to recoup his investment through interest payments/salary/performance bonuses until the well runs dry and the company BKs; or
3) The company continues to be mismanaged, PPS flounders, shareholders realize that they're never going to strike it rich. Finally, Drexler decides to swoop in and make a tender offer himself (likely somewhere in the .65 to .85 range), takes the company private, and either manages to find a buyer or runs it into the ground.
If I had to wager, I'd say option 3 is the most likely based solely on Drexler's greed and excessive self confidence.
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