I can understand where you're coming from. In a nutshell, they...

I can understand where you're coming from. In a nutshell, they want investors to buy LARGE number of placement shares and hold onto them for SOME time. They dont want short term or day traders to buy small number of placement shares and just generate more SP volatility as they offload for quick money. Hence the sophisticated investors. Yes, there were some sophisticated investors that purchased placement shares and still offload them immediately or soon after CR and they would not be contacted again.
Thats what I think of sophisticated investors.