PLX 0.00% 41.0¢ pyrolyx ag

small cap rights issue at 4c

  1. 365 Posts.

    PLX might be worth adding to those interested in the micro caps watch lists.

    As far as small cap stocks with a market cap of around $1m theres not to many that are debt free and have cash in the bank.

    PLX has announced a 1 for 1 capital raising at 4c which has been substantially underwritten .(18m shares at 4c is underwritten $720,000)

    The company currently has around 25m shares on issue with no debt ,cash in the bank,a new board .

    The top are 20 holding over 75% of the stock according to the most recently announced top 20

    Following the rights issue, which I feel rewards the long term shareholders (which were once over $1.50,) the company will be left with 56m shares on issue and around 1.5m in cash to search for new opportunities

    In regard to this its hard to know when the close off date for the stock to go post rights issue is as the announcement yesterday did not give a date of cut off for the entitlement.

    At the curent price the market cap is just on $1m which is not far away from the amount of money 1 investor has underwritten .

    I hold PLX from higher levels and have averedged down,this the vote of confidence from the underwriter gives me hope thats where theres smoke theres often a fire.

    Do your own research
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