placement - question

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    CKG have announced a placement as follows -: The directors of Central Kalgoorlie Gold Mines Limited ("CKG") are
    pleased to announce that the Company will undertake a placement to
    clients and nominees of Montagu Stockbrokers Pty Ltd of up to
    approximately 19.2 million shares at an issue price of 3 cents per
    share, to raise approximately $576,000.

    My question is, since they are currently trading as 3.4 - 4.0 cents, is this normal practice to place the shares at a discount to clients of a broker rather than existing shareholders ? Seems a bit sus to dilute the holdings of existing shareholders so that clients of one broker get a good deal.
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