Ann: Proposed issue of securities - EVN, page-12

Hi Battler62

I don't think any legal action would win in this situation. This happens all the time with companies looking to raise capital. They do an investor presentation to seek funds from sophisticated investors who really are no more that retail investors that have investments with financial institutions like Bell Potter.

Representatives ring their investors to offer them the deal and send them the presentation along with the incentive to buy shares at the listed price.

Anyone that holds the shares in the company find out about the proposed capital raising from the financial institution and then sell their shares including the financial institutions knowing they can buy back at a cheaper price. Most companies do not do an investor presentation for existing shareholders just to keep them happy. It is mostly for capital raising. Unfortunately the market is advised of the investor presentation not long before a trading halt or at the same time and this is why the mums and dads are left in the dark.

ASIC and ASX should be regulating companies to announce to the market early when they propose to do a capital raising to sophisticated investors so that share price manipulation doesn't happen. The company should go into a trading halt or suspension before they approach financial institutions to make it a level playing field.

I wouldn't worry too much about this capital raising as I think the share will be back up to the level it was before the sell down in the next 3 to 6 months because this is a good company and the acquisition will help it grow.

I will be buying in SPP as I am confident the share price as the price on offer is good value and I expect it to go back up to the near future.