trading halt?, page-43

@ melbournestorm

When a broker has a placement to complete and it is available only to SI, there is no need for a prospectus as the SI is deemed "financially savvy" enough not to need one. Normally the broker will give the client a quick rundown of the company story and the SI will be required to indicate whether they want any of the stock available and they will not have long to decide. The broker will know how much stock he has available for his clients and if his clients want more than is available then it is generally 'oversubscribed'. Also if the insto's want more stock than is available then this also equates to oversubscribed. Often the Insto's indicate the price they are prepared to pay and that is about where the price is set. There is no need for the company to convey any of this to retail investors until after the placement has been completed. As you would be aware SSC is in trading halt until placement is finalised to remove the risk of further price manipulation. Once the placement has been done and dusted there will no doubt be an announcement detailing how many new shares have been issued and at what price. A SI used to need to have $2M Net Assets or be earning over $250k pa for each of last 2 yrs signed off by accountant. Pretty simple really.