In my mind the best way to look at the fairness of the placement...

In my mind the best way to look at the fairness of the placement and SPP is to consider what would have eventuated had a pro-rate rights issue been undertaken.

About 13.5m new shares will be issued @$3.70 to raise $50m, HSN currently have 182m shares on issue. That means a rights issue of 13.5 shares for every share held would need to have been instituted to raise the $50m under a hypothetical rights issue.

If a shareholder takes up the full $5000 entitlement under the SPP (assuming no scale back), that means a shareholder will end up with about 1350 new shares.

Hence the key shareholding number here is about 18,000 shares. If 18,000 shares is your current holding and there was a 13.5 for 1 rights issue, you would be entitled to about 1350 new shares (ie. exactly what you will get under the $5000 SPP entitlement)!

Those who hold above 18,000 shares are being diluted, those who hold below 18,000 will proportionally increase their holding - assuming a full SPP allocation.

However, since the company has just announced a weaker than expected 2H2017 which has slightly missed consensus forecasts, and considering the Enoro acquisition cost is a pretty generous 10.5 x EBITDA, we might all the get another chance to buy on-market at around the $3.70 mark. Let's also not forget that the share price has been below $3.70 for almost all of this year as an opportunity to top-up for those with conviction about the company.