Wasa I looked last night at how the company has handled previous SPPs - of particular interest was what they did with scale backs when eligible shareholders (that's the regular one's not the sophs that are invited to the Placements) apply for shares.
One one occasion - the 60 cent offer - there was a significant scale back - applicants didn't get what they applied for - the later the directors carried out a block trade and sold shares of their own associated with the loans for 60 cents - on the other occasion there was not the same sort of scale back.
I completely disagree that the regular shareholders are getting offered shares on the same terms as the sophs. To me it is like Ross is feeding the regular shareholders to the sophs - by giving them certainty (they will get options - its not conditiional - they did get their shares at around a 19% discount to the last trading price - and they got a presentation saying what was going to happen - so they knew what the regular shareholders were going to face as well as the regular shareholders could know - but they knew it sooner) whereas the regular shareholders have none of those informational and certainty advantages.
On one occasion in the past (at least) the SPP booklet went out around midday as an announcement. If the market is open the SPP entitled holders are reading (to see the scale back provisions if they are described for instance) why the sophs can be trading.
It really seems like Ross is feeding the regular shareholders to the sophs to curry favor with the sophs and to dilute the regular shareholder - the regulars could exit - but they can only do it at the discount price the market has been taken down to by the offering of 21.5 cents or lower - or they could have moved really quickly and a handful of shares might have been sold above 21.5 cents - but again the sophs had the advanced knowledge from the early presentation material - they were like set up and ready potentially for a quick jump to grab shares above 21.5 cents if any were available.
To me it really seems like Ross and the board have favored themselves and the sophs over the regular shareholders. Yet Ross suggests again in his 'Friends of Cylata' mail out that the terms are the same.
Am I being unfair here or overlooking something? - I don't think so.
CYP Price at posting:
20.0¢ Sentiment: None Disclosure: Held
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