The placement allotted shares to sophisticated investors who...

The placement allotted shares to sophisticated investors who weren't previously shareholders of the company, sophisticated investors were scaled back based on their application/bid amount (whether that be at the investor level or the broker level). Therefore they now cannot allocate pro rata based on existing share holding (because they didn't allocate this way through the placement). They are opening themselves up to litigation should they allocate pro-rata based on existing share holdings, they have stated they will allocate as per placement. I understand someone has called to confirm the allocation will be pro rata, and it may be allocated that way, but the costs to the company could be material. There would be plenty of ambulance chasers willing to start up a class action for shareholders who were disadvantaged should it be allocated pro rata based on existing share holdings, currently at $3.5 for every share someone misses out on, with 5.5m shares on offer, plus legal costs of both sides, I shudder to think of the total cost. It would be a pretty clean cut case - in favour of the disadvantaged shareholders.