dmagnus,it is different for two reasons;1. size of total equity...

dmagnus,

it is different for two reasons;
1. size of total equity issue versus existing equity base being effectively a 9 for 2 issue, i.e. there will be 5.5 times more shares on issue after the placement and SPP, and
2. the discount to VWAP. This issue being done at 60+% under.

These two factors are what sets this SPP apart from all others I have seen (love you to find me similar circumstances elsewhere). Effectively then, because of enormous dilution we are forced to go hard on the SPP to average down or to take the hit. Thus the take up on this SPP will be higher than the average of 25% (unless the share price tanks to below 15 cents).

Re Jackman, you may be right but let's not forget that in doing the issue that they have they have placed an existing pre issue value on our equity of $123 million versus $1.22b at time of his appointment, i.e. we have had a 90% fall in shareholder value. On 1 December last year he downgraded earnings expectations to EBIT of $136m for 2009 versus the $16.8m underlying EBIT they announced for 2009. He spent 3 months in a strategic review and new business plan before giving the estimates. He may have been a star, or a lucky guy at Coates, but he has failed to impress for ELD. Ask yourself the question, how much faith do you place on the new guidance for 2010?

let's face it they are a disaster.