John, an s708 investor, likes Nugget Gold and is keen to invest if they were to raise capital for an upcoming drilling prospect.
He thinks they may need $2m for such a project, and believes there would be investor interest at a 10% discount to VWAP.
To help kickstart the raise, John creates a offer for Nugget with a target of $600k at a 10% discount to VWAP. He personally offers $50k.
He invites his mates who also love Nugget, and they fill another $150k.
Other Fresh Equities investors discover the investor-led offer and place their bids; soon the $600k target is met.
Fresh consults with Nugget, who are delighted to have received the early interest. The company engages Advent Brokers, who use the $600k as a cornerstone and lead a $2m raise for Nugget.
John and the other bidders are given preferential allocation and are offered to turn their interest into a firm bid.
Shortly after, the raise is completed. John and the other bidders have invested their capital and Nugget is able to start the drilling project.
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