question for t4p or others

t4p
your input, or anyone else’s, in clarifying the details of the placement would be appreciated

I quote from the announcement re the share placement.

“The shares and options will be issued over a 10 day period and the issue
price of shares will be equal to the daily volume weighted average price
of the shares as traded on ASX during this 10 day period ending 20th April,
2005.”

Note the wording. The shares will be issued over a 10 day period NOT at the end of the 10 day period. Normally the VWAP is determined over the whole of the 10 day period and the average price arrived at is the placement price. What I understand to be the case here, is that on a daily basis a VWAP is determined and this is applicable to that days uptake of the placement, e.g on day 1 “x” million shares at price “y” and so on until the placement is fulfilled.

If this is so, expect further daily tug-o-wars as seen today.

I rang the company this afternoon with a view of getting this straight. I was advised that M.M was to call me back. I did not hold my breath, and of course no call was received. Here is the number if anyone else wants to follow up (08) 9322 3700

your thoughts?