Who is participating in the SPP?, page-12

I am not given to bold statements (at least not on HC), but here it is:

• The pricing structure indicates the level of "desperation" by management (and also how Bell Potter and Assoc. operate). They want / need the capital at all cost to get this acquisition / merger done. Hence, no floor is given and it won't be dearer than 10.5c. - This way, you enhance the possibility of over subscription (and that is good). Otherwise, would this CR really be over subscribed?
• It is disingenuous of us shareholder to expect the SP to be bid up north of 10.5, if 89m shares, i.e. a little less than 25% of new scrip, iscoming on to the register in the next 4 weeks. The opposite is rewarding, i.e. keep it down for now. What happens after 14 March is a completely different story. My guess it, the new share holders will be very happy (if the guidance figures hold).

On the other hand, these shares will be fully paid. So the dilution issue is somewhat mitigated. And the end result will be a combined company with an EBITDA guidance of $5.7mio and a targeted t/o of more than $80mio.