A rights issue avoids the need for a prospectus,

whereas placements are required to comply fully with the Corporations Act

disclosure rules

A rights issue exposes the company to pricing risk due

to the time lag between announcement and issue, while a placement can usually

be executed more quickly

A placement preserves the proportional ownership of

all shareholders, while a rights issue leads to dilution of ownership

A rights issue typically involves selected

institutional investors only, while a placement is offered pro-rata to all

existing shareholders