As a general shareholder the system is designed to take your...

As a general shareholder the system is designed to take your wealth and redistribute it to the Wealthy and unfortunately for us Managements are happy to take the easy option and play the game.....

Patersons, sound familiar ???? They are the brokers involved in the ELK 9c capital raising....their latest involvement is as broker for SSN....Patersons will not be involved unless SSN get a minumum subscription of $4.4mil, if they get that amount then ssn are in bussiness in which case Patos will underwrite the next $10mil, for that they will take approx $1.1mil straight back as commission and also options that equate to approx 15% of capital that I suspect will be valued at $1-$1.5 mil immediately upon listing.....so in effect Patos have made an instant
25%approx return on the $10mil they have underwritten....The amount they actually have to put up may be significantly less than that depending on the uptake in the rights issue, in which case the first fee will decline and the instant profit on the amount of money contributed will rise....assuming Patos only need to put up$5mil then their instant return would be 30-40%.... bearing in mind that the rights issue was placed at approx 67% discount to the last traded price of SSN......

Unfortunately for shareholders like us who invest in small companys like ELK management tend to be too moulded into the system....Shareholder dilution is ingrained into their way of thinking, to them it is the done thing....It pays the bills, directors fees and occassionally enough is left over to develop the business.....All very relevant to ELK as we need to fund our way forward...