where to from here...., page-13

Hi GC,

I think you could say it's discounted shares for investors who have enough dosh to be considered sophisticated investors and can cheaply fund the company's needs. The company needs to discount to get the placement away at little cost to them. And as a shareholder I suffer the catch 22 that it helps my shareholding in the long run to have a viable investment but I am diluted at the same time. Drat and damn but that's investing for you.

By only dealing with those who by law can be deemed sophisticated investors the company does not have to fork out tens of thousands of dollars doing disclosure documents and mailing them to it's retail investors.

If you think you are in that league and can cough up a couple of hundred thousand dollars at a time you can ring most companies and they will be happy to include you in any placements. They'll call you a mate as well I'm sure so that then you could say it IS cheap shares for mates.

A SPP is fair enough if enough shareholders participate to warrant the cost but I don't think many small companies want to take that chance. It screws their finances if it fails.

Cheers

Seik