Ann: Completion of Capital Raise, page-4

"Anybody an idea will SPP be pro rata?"

100% certain it will be.

In fact, I'm surprised they are even offering an SPP given the structure of the share register, which is dominated by really small shareholders (88% of shareholders - ~1,540 in number - own less than $21k worth of shares, a meaningful 60% of shareholders own less than $4.5k worth of stock).




Even if the SPP amount was as big as one-quarter of the size of the insto placement, so 0.25 x $13m = $3.25m, that would mean only ~$2,100 available per "small" shareholder.

I guess the reason the board opted to include an SPP was in recognition of the company's loyal, NZ-domiciled shareholder base, which represent almost 60% of the share register.


(From a behavioural finance point of view, I find it somewhat bizarre that people express great interest in participating in SPPs such as this when, just a few short weeks ago, they could have acquired the stock at prices 25%, and more, lower than the SPP price.

Same company; same assets and IP; same management,;same fundamentals, same valuation; same everything... the only thing that has changed is that some investment institutions bought some stock.

In other words, it appears to be a case, of "If the investment institutions think it is good buying, well then it must be, so I'll do the same.")

.