SPP Survey, page-292

I don’t think admire is the right word, and loathe is way off base (disclosure - I think I would have been one of the first muppets to pay up my $30k full allocation). We should be thankful for those that put their capital in, as it will drive the company forward faster.

there’s often a lot of talk and resentment about the discounts on capital raises when they go to institutions who just flip the shares (and I can understand that as a shareholder who has been burnt a few times), but they are providing a valuable service of ready capital to fund company growth, so in some respects they deserve a return (yes I agree it’s all a bit grubby with mates dipping in, but pluses outweigh the minuses).

in this instance, the only people eligible to participate are existing shareholders. So if some buy and then sell to manage their overall exposure - that’s great - Rac gets the funds, the shares that are sold go to either (I) existing shareholders that want more at good prices but couldn’t buy more in the spp, or (Ii) new shareholders - that’s great too.

My expectation is that retail shareholders who participated in the spp will be reluctant to sell below $3.00, and BG seems to have already put a $3.10 floor on his sell price, so share price base case is to muddle along in current range of $3.10 to $3.40 until spp “non-committals” have been washed out. If it’s oversubscribed, then maybe the overdue re-rate comes in earlier. If we don’t raise the maximum, then that will be interpreted as existing shareholders not being fully convinced or committed - we could then be in for an ugly ride that bumble along and maybe falls below $3.00 for a period (months unless startling news).

my rational brain says the spp should be easlily oversubscribed, but I’ve seen too many stupid comments on here to be confident that that will be the case.