whos taking up what and why?, page-20

rickh - "On a seperate note. I wish those who think blue ocean are doing this for free would take some notice. 75k in fees for a cap
Raising is not free ! The options and the short fall take up are a bonus."

Speaking of taking notice, the way I read the prospectus is that $75,000 is to cover the expenses involved in the raising not including Blue Ocean's fee. In other words, and as noted on the prospectus: ASIC lodgment fees, ASX listing fees, share registry fees, legal fees, printing and distribution.

None of those things are free, and obviously Blue Ocean isn't going to pay for them - that's Sipa's responsibility. Tried to mail a letter recently? It's 70c just to send one slim letter. How much is the mailout of all this guff to all our shareholders? You can see how it would all add up fast.

From the leaflet to shareholders the other day: "Blue Ocean Equities have offered to manage the placement of any shortfall, and to
provide Corporate advice, for a period of 18 months for the fee of 7 million Options,
on the same terms as the Entitlement Options."

So unless I'm missing something - Sipa are covering the basic expenses involved in any raising of this type, and Blue Ocean are taking their fee in options. The options aren't just a bonus, it's how they're being paid.

$75,000 is extremely cheap for a rights issue. How's it so cheap? Because Blue Ocean are taking payment in options. I'm struggling to see how that's bad for Sipa shareholders.