CU6 - Media and Industry News, page-104

The bit that doesn't add up is why - if there was so much demand by instos (that have apparently been lining up to buy desired stakes at north of $3) - the CR was done at a discount? All those $20-$50m bids and yet the CR was done at $2.55 when the SP had been above that for the prior two months.

Its also disingenuous for Alan to say that "retail investors could have bought previously at under $2.55" as a justification for the pitiful 1/33 allocation. Why are retail investors expected to invest at that price without the knowledge of the Board's intention re: capital raising and without the $120m in the bank, yet external institutions get the inside knowledge at the opportunity to invest with no funding uncertainty?

The primary responsibility of the Board is to take care of existing shareholders, not take care of institutional mates and brokers. It wasn't done in this case, and efforts to spin it differently are embarrassing to the Cu6 Board and insulting to shareholders. The fact that the SP has gone for a run since, doesn't change this.

Had the CR been done at a premium - say $3, vs the $2.80 it was trading at prior - then (a) dilution would have been lower, (b) claims of strong institutional demand would have been proven and (c) the case for offering retail holders just 1/33 would have been justified.