Ann: Investment by Quintiles, Placement of 225 mi, page-12

re: Ann: Investment by Quintiles, Placement o... Skint,
As I read the announcement Quintiles are buying a MAXIMUM of $2.25M worth of shares at around $0.1624.
The bulk of the cash raising is being brokered by Southern Cross Equities via private placement and this is what Gumboot is complaining about, and I agree with him.
The placement will be for a maximum of 225M at 80% of the VWAP of the shares for 5 days prior to the date of the placement. I guess this means a date sometime after the shareholders have approved the share issue. It is possible that the share price will be artificially driven down prior to 5 day period to enable large investors to grab a chunk of Prana at the cheapest possible price. The share price COULD be driven down by persistent selling to the 12c level and then the private investors will only pay 10C a share, this makes the $2.15 I paid for my first bunch of Prana shares look a bit sick.
I guess the thing that makes me annoyed is that we could have raised the required cash via this method immediately after the P2A results in early 2008, the share price was around 45C and thus the cost of raising the 25M or so needed for the P2b would have been around 36C a share and 70M shares, which translates to an approximate 30% dilution. If this had transpired we would today have had the results of that trial and be potentially sitting on the first real theraputic treatment for Alzheimers.

We are not privy to ANY of the activity that Prana management conducted in the past 2 years in their attempts to fund the P2b, maybe they have been "PLAYED" brilliantly by big pharma or financial investors, but all I can say is that the end result is a poor outcome for Prana shareholders and reflects very badly on Prana Management and board.
PJ