This RO is a way for the company to tax the shareholders for the $$ to operate the company. Essentially it requires the share holder to cough up $0.0075 / share to maintain their stake in the company. Here’s how it works.
Three guys each owns 100,000 shares at average price $0.05 ($5000 investments).
Guy A gets his rights offering but chooses not to participate as he is out of money and can’t pay the $750 it would cost to convert each of his RO into new shares at $0.0075 a share. His 100,000 is reverse split and his new average price of his now 50,000 shares is $0.10 a share.
Guy B exercises his RO and tells his investment bank to participate on his before. His bank takes $750 and converts his RO into 100,000 additional shares of RGX. His now 200,000 shares are reverse split back into 100,000 shares and his average share price is now $0.0575 a share. No big deal other than finding $750.
Guy C on is fat with cash. He tells his investment bank to participate on his behalf and to ask to acquire any additional shares through any unused RO like those from guy A or anyone else who doesn’t participate. His bank takes the $750 to convert his RO into an additional 100,000 shares and they ask RGX to provide another 200,000 shares from unused RO so their client can acquire another 200,000 shares of RGX. These unused RO cost $0 and they’re conversion cost him an extra $1500. He then has 400,000 shares that cost him $5000 +$750+$1500=$7250. His 400,000 shares are then reverse split into 200,000 shares of RGX at an average cost of &0.03625 a share. Guy C is super happy guy A and others gave up their RO for nothing and allowed him to lower his average share price easily because he believes in the company and wants to make this investment a 10xROI opportunity
Who is right? We will find out if and when the company starts to make profits in ??? months.