spp discussion, page-97

The CR wasn't bad timing, it was lucky timing.

All existing SSN and SSNO holders had their value decimated by placement to external parties at massive discount to market price. Every time that happens (look at dozens of other stocks as examples) the stock price drops to the price of the issue thus destroying shareholder value. Market conditions didn't cause this 25% drop in the SSN price, market just exagerated what was caused by the placement.

The timing was however lucky. SIs who managed to get stock 20% below market price look to have paid up before this occured. Existing holders now get the opportunity to buy below their placement price.

Shareholders should always be given first right of refusal in capital raisings. If the issue is below market price it doesn't matter because it netts out for each shareolder who takes it up. Offering placements or SPP which is not pro-rata is unfair and unreasonable.

Raise capital but don't do it at the expense of the existing owners of the company. Give the owners a choice. Pro-rata renouceable rights issues should be the default way to raise capital IMO.