entitlement of shortfall v novus, page-6

Whatever the breakdown there will be some disappointment as the SPP has been oversubscribed and there will be cheques coming back to shareholders. Just how much will be the sensitive area.
Managements position will be to fairy allocate stock where they believe there is the least risk of that stock hitting the market.
Novus will stand for its clients that have supported the company and at times in the past may have taken on more risk than some but of late have been on the positive earnings side.

If the company is to buy more acerage and fast track the development they may need the certainty of being able to use Novus in the future. Certainly as development proceeds more formal facilities like banks will become available but with that will be interest costs.

If the past is any direction then the company will offer 100% of additional requested shares to shareholders upto a certain dollar value, and then a percentage requested over that point.
Novus will get a percentage to share with its clients that have been supporting the company to date.
If the SPP was undersupplied then the Novus clients would still be requested to take up the offer so its abit win/win, lose/lose grey area for company and underwriter.

Just this time it is now obvious that the offer was underpriced. Shareholders and underwriters/clients both see that.
The bottom line is that the disappointed money will probably find its way back into the shares.
I thought this would be the outcome and was happy to buy over the last two weeks as at 2.2c the shares are still a bargin. I took up my allocation, sent some extra for additional shares and brought on market as well incase the stock took off with an announcement. Its my belief that theres many multibles in the SP so getting 1.7c was a big bonus. Everyone is in profit.