Yesterday, PSDV announced certain amendments to a $15m subordinated convertible that was completed in June 2005. Investors reacted angrily chopping the share price by 20%.
Most obvious was the change to the conversion price from AU98c to AU32c. Further changes included a pushing out of the repayment dates to July 2007 and January 2008, removal of a cash reserve requirement, and the ability to redeem the notes anytime from royalties or new raisings.
Bottom line is that PSDV paid quite heavily for the loosening of these financial restrictions.
My opinion on the stock remains unchanged as I think substantive news will drive the stock higher.
PSDV 1-yr chart: