Lol, McCoy Pauley, sometimes it's more helpful to explain things to people as opposed to basically telling them that they're wrong without offering any clarification. In fact, in my opinion, clarifying stuff like this is the whole point of forums like ASF!
Nero, it took me a while to figure out why I was not considered a "sophisticated investor" given that I've known all about particular companies before they've undergone capital raisings, and as you stated, I'd been trading these companies for several years and considered myself a sophisticated investor. As McCoy Pauley stated, the term "sophisticated Investor" has a statutory meaning pursuant to the Corporations Act 2001, specifically, Chapter 6D of the Act. The Act requires that when a company wishes to raise capital by offering securities in exchange for cash, the company needs to issue a prospectus disclosure to investors. However, companies are excluded from the requirement to issue a prospectus disclosure if they are offering securities to parties who fall under section 708 of the act. Subsections 708(8) to 708(20) of the Corporations Act define particular parties to whom a company may issue securities to without the need for a prospectus:
a 'sophisticated investor;' which is defined where:
the minimum amount payable for securities is at least $500,000; or
the collective amount invested in the same class of securities adds up to $500,000; or
a qualified accountant certifies the net asset worth of $2.5 million or gross income for each of the last two financial years of at least $250,000 per annum.
Now these are definitions I sourced from the internet so they may be outdated and I'm not stating them as absolute facts but I think the jist of this information is correct. Basically, it all boils down to how much cash you are investing, ie. according to the Corps act, cents buy sense. So if you are investing or have invested greater than $500,000 in TRF, you are likely to be considered a "sophisticated investor". If not, you’ll miss out in involvement in this capital raising.
I hope that helps.
Yep kermit I'm with you on this one. I have held IFE and TRF recently and have trimmed back to holding TRF as it does seem to be well under what IFE should value it at. Given the great valuation that IFE will be at once it starts production (assuming all goes well) I can't see TRF being less than $1 by years end and more like $2 (based on my calcs of IFE hitting an MC of $250m or SP of $6ish).
Then looking further down the track, if ROL can prove up something that might even begin to approach LHG (say ROL valued at $1bn) then well blue sky is the limit
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?