Ann: Ceasing to be a substantial holder - Patrick Riley, page-38

This raises a few questions:

- Why would the founder, who is involved with the "day-to-day" running of the business, sell down 75% of his stake for 25c. If this was going to take off within 1-2 years, he'd be in the box seat to know, so surely he could hold onto them for a bit longer?
- Why is the buyer buying at 25c? They could have easily accumulated on market the same number of shares for considerably less. There has been a heap of churn sub 20c for the last 2 months. Makes me think the buyer has paid a premium based on additional private company information. Why else would you pay a 40% premium to the then share price? Perhaps has takeover plans down the track and is using this as a starting point.. Even if the company flops in 1 year's time from now, it'll still have close to $20m cash assets, even after assuming minimal revenue growth from here.