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This page comes from Smith-Barney




Sophisticated Investors

High net worth individuals and professional investors (who meet certain criteria) are able to invest in a range of investment opportunities (known as excluded offers) not available to retail investors.

Following are some of the types of investment types open to eligible investors:

* Unlisted shares without a prospectus or ASIC registered disclosure document.
* New issues of shares by a listed company without an ASIC registered prospectus or registered disclosure document.
* Foreign mutual funds, CAM Private Portfolios and anything else that falls within the Australian definition of a managed investment (Please note that many wrap accounts and discretionary broker accounts fall within the legal definition of a managed investment).
* Unregistered (or private) Australian managed investments.
* Only people and organisations classed by the Australian Corporations Law as sophisticated or professional investors may invest in these excluded offers. Following are the legal definitions of a sophisticated investor and professional investor.

Sophisticated Investors

1. You invest a minimum of $500,000 in what would normally be an excluded offer; or
2. You provide a Certificate from a Qualified Accountant that you:

1. have net assets of at least $2.5 million; or
2. have a gross income for each of the last 2 financial years of at least $250,000 a year.

If you fit this category, you must provide a certificate from a qualified accountant (a member of the Institute of Chartered Accountants, Australian Society of CPAs or the National Institute of Accountants) stating that you do. A pro forma copy of this certificate is included in this folder. Certificates remain valid for 24 months.

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Lets say a person is one of the above.

Wants 1,000,000 of ESG at the issue price of .55c ($550,000)

Problem is " heavily oversubscribed" and that person only gets 120,000 or 12% ( that percentage came from Patersons..my broker) $66.000.

What would that person do on 18 March?