SP over 0.05 is very beneficial to PKK
A shere price above 5c allow the excercise of all warrants including the 200m warrants to be issued to Banlan. The warrants excercise , in turn, create a snow ball effect on the business prospects of PKK.
The 40mm warrants issued at 2.5c in the last PP raise 1mm cash.
20mm or so warrants previously issued at about 5c raise another 1mm.
200mm warrants for Banlan at 5c raise 10mm.
Together with the 4mm cash injection from Banlan and the 850k raised in the last PP puts a total cash figure over almost 17mm. This is enough capital to allow Peak to decelop and strenghten the company on a few fronts:
1. Use 850k to pay off convertible debentures and strenghten balance sheet
2. 4mm --> used to set up Peak China, develop Plastic bank platform and promote stock through road shows etc.
3. The remaining 12mm should be sufficient to cover the cash payment in a Longkey takeover (which under the original Longkey agreement was 11m) even before any major revenues start flowing (provided Banlan excercise the 200mm warrants).
The Longkey takeover is, imo, a very important business diversification for Peak which reduces substantially any risks associated with the Plastic bank and or Banlan and thus an important catalyst for the stock price. Since Peak can only issue a max of 140mm shares to Longkey while preserving the majority ownership for Banlan, a 5c sp is not enough to complete the Longkey takeover. At 10c Pkk can issue 100mm shares and add another 10mm cash (from warrants excercise) which is essentially the original agreement with Longkey.
IMO, here are the important events in the near future:
1. 4mm cash from Banlan received and 200m units issued to Banlan.
2. Peak China: set-up complete and operational shortly after
3. 10mm received from Banlan from warrant excercise (that is one major event for Peak as it would be a strong confirmation for all sharehoders that Banlan considers Peak an important partner). This is a much larger indicator than the 4mm upfront payment because it confirms Banlan's commitment to Peak.
4. Longkey takeover finalised.