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MrMustard

My previous response was modded, because I did not provide a justification for my interpretation of what to be a cornerstone investor means. The moderator suggested that I provide links to my assertions, which is fair enough. So here goes again - this time with a link and quote.

You write: "By then P1 should have cornerstone investors on board under-pinning the valuation. There will be loose hands that will just take what they can get on listing pushing the price down."

Yes, those who were given free P1 shares may well have loose hands. Not so with cornerstone investors, who (unless P1 has misappropriated an unequivocal term used in the investment community) will have their shares in lock-up (escrow) for a year or two.

That's why the term 'cornerstone investor' was invented - to describe investors who shore up the building. If their shares are not in lock-up for a time then they could bring the building tumbling down before it is properly established.

It's something to watch for - P1's definition of a cornerstone investor.

Where do I get my idea of the definition of a cornerstone investor? Among other places, HSBC's Financial News.

http://www.efinancialnews.com/story/2011-09-12/laying-the-foundations-before-deals-hit-the-street

where we read about Glencore:

"Its secret lay in securing a group of cornerstone investors . . .

Such investors publicly state their support for a newly listing company in exchange for an agreed allocation up front – rather than standing in line with the rest of their peers – but have to lock up their money for up to a year, no matter what is happening in the wider market.

The idea of the cornerstone investor originated in Asia and has taken European financial markets by storm. It could not have come at a better time."