Ann: Share Purchase Plan Offer Document Despatch, page-34

It's the perennial complaint against capital raisings - the company raised too early and should have waited for the share price to appreciate. There is an argument that it is better to go early because the capital markets will exploit any vulnerability once the company's cash balance becomes depleted and the timing to raise money becomes more constrained. On the other hand, if the company has just secured debt funding and the confidence of a senior financer it might make the company more attractive and give the company more strength when seeking to raise capital. Furthermore, if you know that there are large investors wanting to invest in your company do you turn them away when you know you will need the cash down the track?

I like it when a company does a SPP to give retail a chance to remain undiluted at the same terms as the sophisticated and wholesale investors. But it is often the case that SPP lead to the share price retracing down to the offer price in the short run.

That's life on the ASX merry-go-round,