We have hit the one the big problem when REIT's don't work, the price for new equity is not accretive any more. As this stage it's a bond, till the share price can increase and new equity can begin. Not a good situation for a growth company to be in.
Since we can not raise accretive equity at this time PZN has no choice but to finish up it's existing business and wait. CPV is in this boat too. Their share price has to be over $20 in order to issue shares.
PZN will be forced to curtail it's growth plans for next year, that seems quite obvious at this point.
NewMK, I must admit at this time the REIT strategy must go. The structure is not being accepted and the timing is not right. I still generally like the idea, but when it turns a growth company into a bond it's a failure. I can't support it when it drastically hurts the comapnies future as it is now.
Now the issues of competition from others and the anti-privatization movement become more real. What do the CCA salesmen say now when the Feds come knocking next year saying we're ready to go and PZN can't raise accretive equity. This is when I have to say it's time for a chance