Hi AllThe SPP allows each shareholder to take up to $15k in...

Hi All

The SPP allows each shareholder to take up to $15k in shares (that is it is not a rights issue which would allocate in proportion to one's shareholding)


The SPP will raise a maximum of $6m and assuming people apply for their full $15k entitlement then there will only be 400 parcels of shares available to go around ($6m/$15k).
I do not know how many shareholders are on the register but for 700m+ shares I would imagine there are significantly more than 400!


The point I am making:

1. If oversubscribed (highly likely IMO), the shares will be allocated in proportion to the amount you apply for (versus total applications by all shareholders)

2. Granted that not all shareholders will apply for full $15k (or any at all)

3. Even though they will not all apply for $15k, say they apply for $5k average (then still only 1200 parcels of shares available - ie $6m/$5k)

4. As long as at least 400 shareholders apply for $15k - then we are fully subscribed!


What I am getting at is while there may be a perception that we can all buy shares through the SPP at 8.25c - this is very unlikely due to oversubscription and we may well land up getting fewer than we are expecting.


I think it was a great opportunity to buy at 8.3c today - but it is unlikely to repeat.
Best shot at getting the 8.3c price will be if a "sophisticated" investor dumps more stock - surely even they are sophisticated enough to realise that they will be selling at the floor??

The share price is clearly a great Buy at this level.