Saul,
Welcome to the board. The PGRI-TDYH deal is still problematic. The closing date has already been extended until May 31, 2007, though PGRI has not yet filed a definitive proxy statement. My guess is that the closing date will probably be extended at least one more time.
The shares of PGRI last traded at $7.57, a slight discount from their Marcy 31, 2007 cash value of $7.65. The warrants, which have a strike price of $6.00 per shares and last traded at $.48, are selling at a huge discount. This would suggest that the smart money does not expect the deal (as currently structured) to go through. The deal has already been restructured once and it is quite possible that it could be restructured a second time. Also, in order to get the deal done it would not be unprecedented for the insiders to restructure their deals.
The drama could extend another five months:
Q. What happens if the asset acquisition is not consummated?
A. Platinum must liquidate if it does not consummate a business combination by October 28, 2007. In any liquidation, the funds held in the trust account, plus any interest earned thereon, together with any remaining net assets not held in trust, will be distributed pro rata to the holders of Platinum’s common stock issued in Platinum’s IPO. Holders of Platinum common stock acquired prior to the IPO, including all of Platinum’s initial stockholders, officers and directors, have waived any right to any liquidation distribution with respect to those shares. Please see the information set forth in the section entitled “Special Meeting of Platinum Stockholders — Liquidation of Platinum” beginning on page 37.
sec.gov |
