With regards to somebody taking a big placement in the...

With regards to somebody taking a big placement in the company...

If the directors offered the shares to the potential investor, without the SPP, then it is possible that the existing shareholders could complain and ask for an SPP on the same terms as the investor received. Very often after a company makes a placement to institutions it will also have a SPP so the existing shareholders don't have something to compain about.

"Why did the institutions get those shares at a discount, when we, the small shareholdes get nothing?"

However, if you do things in reverse, by putting the SPP first, then the shareholders have nobody but themselves to blame if they fail to take up their entitlement.

"We offered you the shares, but you didn't want them, so we then offered them on the same terms to someone who did."

Anyone wanting to acquire more than a few million shares would easily push the price up over the 3.7 cent issue price, so today's price fall would be irrelevant to their thinking.

How will we know? We'll look for an announcement concerning an underwriting agreement for any shortfall. And failing that, we'll watch the announcement regarding the takeup of the SPP shares.