post spp churn, page-20

Simple:

How many shareholders are there? How many are going to put in for the whole $15,000 worth of shares? How many are going to put in for $5000 worth of shares?

A total of 29,629,630 are going to be alloted. There are probably around 1300 shareholders.

That means an everage of about 23,000 shares per shareholder.

So how do you allocate?

Allocate equally? That would mean that those that requested $5000 of shares would get 23,000 shares / 37,000 or 62% of their request. Those that requested $15,000 of shares would get 23,000 shares / 111,111 or 20% of their request.......

Of course most won't request the max of $15,000 of shares, but if they did then that would be impossible. So say that the big holders or 200 of those that hold over 100,0000 shares ask for that $15,000 amount.........that would amount to some 22,000,000 shares just for them or over 75% of the shares in the SPP..........not going to happen as the other 1000 holders would have to split the remaining 7,000,000 million shares or 7000 shares each or 18 % ($5,000 requested) or 9% ($10,000) of their requested amount........IMO not going to happen.

What I have seen in other SPP's is that a sliding scale is used to allocate with those requesting the lesser amount being given a greater % of their total request and those that requested a high number a lesser %. The old ARQ did it that way.

So for example those that requested the $5000 get 60% of their request, those that request $10,000 get 40%, and those that request get 35%.........