PP one way of looking at it, but I flipped it the other-way....

PP one way of looking at it, but I flipped it the other-way. Typically at this end of the market the going rate for a placement/CR is 20% disc to the VWAP. That is you get your money through issuing shares and diluting other holders.

This however is relatively cheap money and the dilution is minimal as the shares issued are not the entire principal, but only the establishment fee.

$75,000 at 20% discounted shares gives approx $90,000.

$90,000 on $500,000 is 18% return

Still cost nearly 20%, but didn't get diluted (much)

(annualising returns and allowing for SP appreciation always gives funny/impressive numbers, try it with a SP pull back too. Anyway I too have lots of fun with my spreadsheets, especially if I have a good week in January and project my returns for the year).