Ann: BKI Announces Entitlement Offer and General Offer, page-48

Unfortunately I think we are going to see a capital raise every 18 months or so and judging by the recent "general offer" component they will start doing that each time as well (ridiculous that the general offer was at exactly the same price as the placement to shareholders. It should have been at a slight premium to at least give the loyal shareholders some minor reward). We discussed this at the time it was announced but the only way for Contact to get their management fees up quickly is to increase the total FUM so they are incentivised to have raisings rather than let it happen organically by making sure the portfolio performs well. I don't buy into their "increased scale" justification because it's not like they get extra "bargaining power" in the sharemarket or anything like that. It purely benefits Contact