SPP Entitlement, page-15

I have participated in many SPPs over the years.

The way stock is allocated has actually changed over the last couple of years. In the past it used to be scaled back evenly no matter how big or small your holding was.

Recently companies have been scaling back pro rata based on your holding as of the ex date. I.e Shareholders with millions of shares will be allocated more of the stock as opposed to those with a few thousand.

I have also experienced the situation where a minimum is allocated to everyone and then the remaining is pro rated on exisiting holding.

I would hope that with the company increasing the placement size from $8 to $12 million they may look at doubling the SPP allocation from $4 million to $8 million to look after all shareholders.

The company should have looked at an underwritten rights issue instead. It would have been so much easier and fair and we wouldn’t have all the money sitting idle for weeks.