bungalowbill...that was my impression first up, but there's...

bungalowbill...
that was my impression first up, but there's probably detail they haven't fully explained.
it doesn't make sense that lda would take shares in a falling stock, as with a normal capital raise, and they dont, that's why their modus operandi is "special".

i think i said before... lda's mo is not to hold stock long term to get equity in a company, apparently they like to sell, and their method gaurantees a return no matter what happens to the share price.

$463,000 would give them 12%, but dont expect to see any announcements to that effect.

a version of their mo (according to a financial review acticle) is that they dont pay for the shares until they sell, and their selling price is what the company gets (less costs)... again that doesn't seem to make sense, because classic could just as easily give you or me 500 million shares and we could sell them on market and then we could pay classic the proceeds .. doesn't make sense... unless... they give what no one else can...a guarantee as a non related party with tried and proven legal framework in place.

in theory using the 30 day average price that they quoted, (about 0.3c), implies that lda have already sold their shares within that 30 days and achieved an average of 0.3c... how else could they do it without a risk of losing money? they are not going to hold shares they've paid 0.3c for when tomorrow they could be 0.1c

so what would classic have achieved by issuing shares this way?...they would have effectively sold their shares on market through an agent, classic would receive 90% of the realized price and the agent a 10% commission....i'm not saying this is what happened, but just that this is in part a mo described as part of lda's usual practice, and it's legal... (the commission part is my own assumption based on the classic announcement, in this case lda would gain about $46,000).

i could have this all wrong, and the actual method used could be any other variation of the modus operandi described by the financial review...classic certainly did not mention any precondition for lda to sell the shares immediatley. but that would be a way for lda to conduct a business model where they have a certain return without a long term investment in a risky company.