placement nc, page-30

To gmt:
"...we long suffering holders do not get a look in on these sweetheart deals for High Wealth Investors, seems us Low wealth investors continue to line their pockets with easy money. "

To do a general issue of shares to "low wealth" investors requires a Prospectus or in some circumsances a Product Disclosure Statement under ASIC rules. The current cost to produce a Prospectus is about $400,000 plus printing & mailing. Expensive mechanism.

A company can do private placements to up to 19 "sophisticated investors" ("high wealth" which I think means over $500,000 disposable income/assets)in any 12 month period. Most companies are careful not to use up their allotment of 19 too quickly (never know when ya might need a lazy mill or two!).

The cheapest option for "low wealth" investors is a Share Purchase Plan, currently limited to $5,000 per investor per 12 months. Hower, a SPP usually takes 6 to 8 weeks to complete - a private placement can be completed with one phone call to the right (and receptive) number. I understand ASIC is looking at increasing the SPP allowance to up to $15,000 per shareholder, but has not yet finalised this.
You couls always pressure CTO for a SPP, especially if the new limit comes in.