Ann: IMUGENE ANNOUNCES A$80 MILLION INSTITUTIONAL PLACEMENT, page-176

On topic of IMU placement - $80 million is a large sum. It's interesting reading the threads this morning, plenty really need to go back to Finance 101.

What sort of expected return do you think a firm would want on a $40 million investment? Nil, 5%, 10%, 30%? Who would risk $40 million for some free options... the options were kicked in to secure a larger placement, that is obvious.

Yes the options hedge against (only somewhat) any potential underperformance of the $40 million investment (X2) but nobody's manager is signing off on an investment of that size unless they are confident on their expected return.

So I ask people again. What sort of expected return would you want on risking $40 million? Figure that out and hopefully some solace is found.

Hold on to your hats!