Ann: Disclosure under ASX Listing Rule 7.1A.4B and 3.10.5A, page-3

Me too..

MGV was freight training past 10c before the last placement. Yes, placements = dilution, but in the middle of a good run with more announcements pending (with funding not needed for a number of months) you tend to let it rip along awhile as it could have been a >10c not 7.5c raise. The problem with brokers is they get remunerated on $ raised not the price, so a lower price = less effort required for the same compensation (the lazier the broker, the lower the price).


Post-placement marketing is also pretty essential.. I know brokers aren't remunerated for doing this (except for some brokerage on trading), but it really helps their reputation which in turn helps future placements.

The problem from my limited experience in capital raising is that you need an adviser/broker who follows up with some good research and has a pool of investors who may not have taken up the placement, but will follow it and buy some on market. This used to be the case on the west coast in the boom times, but to my knowledge most of that pool was hit hard by the end of the boom and whats left just gets recycled constantly through deals. Whereas there is a still a tonne of money on the East Coast. They either need Patersons office on the East Coast to take it up or find a mid-tier east coast broker.