Ann: EOS Defence Systems Sector receives order, page-28

An investment banker or broker does not do a placement on behalf of any company without meetings etc with the company.

The Analyst/broker meets, attends "personal presentations" discusses & reviews, probably over a few lunches, dinners, site vists etc. The analyst should only be told information available to the market however this is the real world I would be confident is saying in order for a company to be engaged by a broking house they need to dangle a carrot (give info) so that the broking house can see there is money to be made! So it could be the case that the analyst/broker is fed info re deals etc.

The analyst then looks at a funding package and negotiates price/terms. Commission varies usually between 1% and 5% ...sometimes more and the commission payment can be by way of cash or if agreed shares issued to the broking house instead of cash.


Once agreed the sell story begins.....

THEN...... depending upon how good it is ... the broking house (in this case Petra) may even take stock (participate in the placement) for its own house trading account!.

The rest is sold to clients. As a general rule the clients are not given details just info like a good deal coming etc etc etc and $$$$ to be made as any additional info is a ASIC no no.

The quicker the placement needs to be done the more attractive is the deal to the broking house to encourage the broking house to participate and make money for its clients.

The better the deal the easier it is for the broker to sell the shares to their clients.

Lets face it if Rene Rivkin offered you $100K of EOS at $2.60 why would you bother.... you can get them on market at that price or even cheaper.

The Rights issue/SPP or placement must be attractive for participants otherwise nobody would participate and it cannot be offered to the public by EOS otherwise a prospectus must be issued.